There's still plenty of upside to owning apartments in metro Charlotte, according to RADCO Cos CEO Norman Radow, whose company recently acquired its first multifamily property in North Carolina, the 264-unit Oak Pointe Apartments in Charlotte, renamed Magnolia Terrace.
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Bisnow: Why buy in the Charlotte market now?
Norman: We target markets with positive migration and low taxes, which are typically found in business-friendly states. With its booming economic growth, strong governance and demand for affordable housing options, Charlotte passes our litmus test with flying colors. In fact, we've been looking in this market for a couple of years now.
Bisnow: Your first deal involves a Class-B asset. What's the thinking on that play?
Norman: Our business plan is to buy Class-B product that, with appropriate additional capital investment, can provide a value alternative to nearby new-build communities. Magnolia Terrace is an ideal value-added opportunity in a strong location.
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Bisnow: What's your strategy for upgrading the property?
Norman: We'll invest over $3.2M to transform the look and feel of the property through interior upgrades, exterior improvements and a common area amenity expansion. The capital plan will concentrate heavily on interiors, including open kitchen layouts, new cabinetry, upgraded flooring, modern lighting, hard surface countertops, new appliances and designer paint.
Bisnow: What else about the market's important as an investor?
Norman: The city’s forward-looking investment in light rail was also an important factor in our decision to make our first acquisition in the market. All things considered, we believe we have a significant success story in the making with this investment.
