Traditional real estate brokerages may be decreasing their office space, but the recession is allowing other types of real estate-related businesses to flourish.
One of those is Radco Companies, an Atlanta-based developer and workout firm that manages some $2.5 billion worth of assets nationwide. Workout divisions are now part of most real
estate investment sales companies, focusing on ways to refinance, buy
or sell distressed assets. Radco announced Wednesday that it is expanding its operations to New York City, with a new office under the leadership of James Raved, a former senior vice president at Tishman Construction Corporation, a separate company from landlord Tishman Speyer.
Radco Development Solutions, the arm of the company that specializes in workouts, is known for helping mortgage lenders and mezzanine and equity funds achieve project completion and investment return on distressed residential properties. The company has recently taken on several assignments in New York City and the surrounding area, Raved said, though he declined to give details about the projects. According to published reports, Radco has been linked with failed Greenwich, Conn., housing complexes Putnam Green and Weaver’s Hill.
While Radco, founded in 1994, has long been active in New York and many of its clients are based here, the company is now doing more business in the area because of its specialty in workout services in the face of the economic downturn.
“There’s greater demand for our expertise and experience,” he said. “Because the market is in distress, lenders are calling upon us to help them work out these challenges.”
Raved said the company is currently searching for roughly 3,000 feet of midtown office space to house six to eight Radco employees. He said he expects to sign a lease within the next several weeks.