RADCO Buys First Apartment Community in Tennessee for $20M

CHATTANOOGA, TENN. — The RADCO Cos. has acquired its first apartment community in Tennessee — Mountain Creek in Chattanooga. RADCO purchased the 296-unit, Class C property for $20 million and has renamed it Radius Mountain Creek, the third community under RADCO’s Radius brand. Marcus Lyons and David Oakley of Berkadia represented the seller, Detroit-based Broder & Sachse Real Estate Services, in the transaction. Berkadia also recently brokered the $8.5 million sale of another asset in Chattanooga, Ledford Apartments, on behalf of Broder & Sachse. RADCO will spend about $6.5 million on capital improvements of Radius Mountain Creek. The Atlanta-based multifamily investor is financing the acquisition and renovations using a $19.8 million loan from Bank of North Georgia and more than $8 million in private capital. RADCO Residential will manage the asset. Built in 1972, Radius Mountain Creek is situated on 50 acres north of the Tennessee River and features views of nearby Signal Mountain. Units average 931 square feet and community amenities include a fitness center, playground, business center and a swimming pool.