Current Debt Terms
Five-year floating rate debt at 204 basis points over LIBOR with five years of interest only payments and extension options.
Achieved an advantageous low per door price after identifying potential for growth in a seemingly stagnant market.
$3.2 million capital improvements plan originally called for amenity upgrades, improvement of common areas, and standard renovations. After gauging market demand, RADCO determined that good unit turns (primarily consisting of new paint and flooring) and solid renewal increases had a greater return on investment than more substantial interior renovations with higher-end finishes. Thus, RADCO completed its amenity and common area upgrades, but pivoted and revised the unit renovation portion of the original business plan accordingly.
At the end of December 2016, revenue had increased 45% and in-place rents had increased 43% following the acquisition with only 16% of units renovated to date.