Atlanta Investor Capitalizing On Investor Fear Of Houston To Buy Multifamily Assets Cheap
The RADCO Cos acquired two more multifamily assets in Houston. The company's 10th and 11th acquisitions of 2016 were Westchase Crossing and Wyndham Park. The properties have been renamed City Chase and City Station, respectively, and together add 814 Class-B units to RADCO’s portfolio.
RADCO plans to spend upwards of $11.3M on capital improvements to modernize and upgrade the expansive communities. RADCO financed the acquisition with KeyBank and private capital.
“Public confidence in Houston has wavered with the recent oil price fluctuations, and institutional investors have since fled the city. This has caused cap rates to widen, thus allowing otherwise solid assets to be acquired at a discount to their intrinsic value,” RADCO founder/CEO Norman Radow says.