Case Study

Mabry Manor (Newly Acquired)

Tampa, FL | Acquired 2016 | 1984 Vintage | 372 Units

Current Debt Terms

Two-year floating rate debt at 295 basis points over 1-Month LIBOR with two years of interest-only payments. Debt represents 65% of the capital stack.

Compelling Story

The seller had initially selected a different buyer with a higher purchase price. However, after two weeks of failed contract negotiations, the seller cut ties with the first buyer and asked RADCO to step in. Although our purchase price was lower, the seller was confident in RADCO’s ability to act quickly and transact under our original contract terms.

Value-Added

$5.2 million capital improvements plan emphasizing unit upgrades, exterior and common area amenities improvements, and deferred maintenance needs. The value-added upgrades transformed the overall look and feel of the property by repairing and replacing the fascia and siding, gut renovating the leasing and fitness centers, upgrading the pool and deck, rebuilding the floating dock and boardwalk surrounding the lake, and adding an expansive playground.

Mark-to-Market Opportunity

The property was in an excellent location and we believed the in-place rents at acquisition were below market. This presented RADCO the opportunity to provide the marketing and managerial positioning necessary to achieve rents in-line with its competitive set.