California REIT Buys Fourth Louisville Apartment Property
- Sep 13, 2012
Louisville, Ky.—Steadfast Income REIT Inc. has spent $15.1 million to acquire Valley Farms Apartments, a 160-unit garden-style apartment complex in Louisville. The property was built in 2007 and is 97 percent occupied.
Valley Farms consists of 10 two‐story residential buildings set on a 13.5-acre site, offering a mix of one-, two- and three-bedroom apartments with average rents of $869. Amenities include a resort-style pool, fitness center, barbeque area and a business center. Also, half of the units have detached garages.
Steadfast CEO and president Rodney F. Emery says that the company believes that the population growth in Louisville in the key renting demographic of 25-34-year-olds, in combination with strong projected job growth and low new apartment construction, will tighten up the market and drive down vacancies over the next several years.
Reis Inc. predicts average annual rental growth of 4 percent in metro Louisville over the years from 2012 to 2016, with inventory in the market rising only 1.4 percent annually. That roughly compares to Reis’ predictions for U.S. annual rental and inventory growth over the next five years, which is 4.1 percent and 1.2 percent, respectively.
The property marks the REIT’s fourth Louisville-area acquisition. In May 2011, Irvine, Calif.-based Steadfast acquired Arbor Pointe Apartments for $6.5 million, and in August of last year the REIT acquired Cooper Creek Apartments for $10.4 million. Early this year the company acquired Renaissance at St. Andrews for $12.5 million.