Seven-year floating rate debt at 247 basis points over LIBOR with two years of interest-only payments.
After the top bidder in an open market process failed to close, RADCO made a direct deal with the seller in only three days.
$1.6 million capital improvements plan included interior and exterior upgrades, common area updates, and amenity enhancements. RADCO also refined operational efficiencies, such as utility billing programs, to maximize cash flow and refinanced within the second year.
At the end of June 2016, revenue had increased 30% and in-place rents had increased 32% following the acquisition.
After a 44-month hold, the sale achieved a 5.69% exit cap rate, a 39.52% Limited Partner IRR, and a 3.03x Limited Partner equity multiple.