RADCO Expands Multifamily Focus in Kennesaw

ATLANTA—Bridges of Kennesaw, a 296-unit multifamily asset in the Atlanta suburb of Kennesaw, GA, has traded hands. The deal marks RADCO Companies second multifamily acquisition in the northern suburb.

RADCO paid just over $35 million for the multifamily complex. RADCO grabbed it from Harbor Group International. Cushman & Wakefield brokered the transaction.

“We will begin implementing our Bridges of Kennesaw business strategy immediately in order to reposition the community to catch up with the marketplace, which has one of the fastest growing economies in the nation,” says Norman Radow, president and CEO of RADCO. “The property has been stable and performing well for the past several years, but now is the time to take it to the next level.”

Bridges of Kennesaw was originally constructed in two phases between 1997 and 1999. The multifamily community features one-, two- and three-bedroom garden-style apartments and townhomes, with an average unit size of 1,162 square feet.

The multifamily property is strategically located off Interstate 75, giving residents quick access to Kennesaw State University, the surrounding job corridors off Barrett Parkway, and direct access to the City of Atlanta and its airport. Kennesaw Marketplace, a 288,000-square-foot shopping center that will be anchored by Whole Foods, is currently under construction less than 10 minutes away.

RADCO plans to invest about $3.5 million to upgrade Bridges of Kennesaw to make it even more competitive in the submarket. The company improve the property's amenity package, including expanding the fitness facility, upgrading the two clubhouses, and revitalizing the property's two swimming pools. RADCO will also upgrade unit interiors and undertake infrastructure improvements. The company will also expand its unique, on-property trail and hopes to become an official part of the Kennesaw Park Trail System.

RADCO financed the multifamily property acquisition with private capital and financing from Freddie Mac. Since August 2011, the company has raised nearly $260 million of private capital to fund its purchases. With this acquisition, which marks the company's sixth this year, RADCO has expanded its current portfolio to include 42 properties, including 24 in the metro Atlanta area. The company currently has five other properties totaling about 1,800 units, which will close in September and October.

"Investors are capitalizing on the strong fundamentals supporting the Atlanta apartment market,” Campbell, first vice president at CBRE Multifamily, tells GlobeSt.com. “Multifamily sales volume in Atlanta has spiked in the past three quarters, up 53.6% over the same period a year earlier. Atlanta achieved the highest overall return among the major apartment markets, and with the trend toward residential urbanization, the desire to rent has intensified keeping the investment opportunities healthy."