Steadfast Acquires, Plans Rehab of IL Apartments
- May 27, 2016
Chicago—Orange County-based Steadfast REITs has launched its third REIT, Steadfast Apartment REIT III Inc. The launch of the fund is timed with Steadfast’s acquisition of 136-unit Carriage House Apartments in the Chicago area. The community is in far north suburban Gurnee, fairly equidistant between Chicago and Milwaukee.
Situated within the Lake County submarket of Chicago, Carriage House Apartments is only minutes away from major interstates like I-294, also known as the Tri-State Tollway and I-94. Many top employers are located within short commutes along Chicago’s North Shore, among them Abbott Laboratories, AbbVie, Solo Cup Co., HSBC Finance and Diners Club International. Two area schools are situated within walking distance to the community, and Illinois’s largest outlet mall, Gurnee Mills is also nearby.
Purchase and renovation of value-add multifamily properties, many of them in secondary metro areas likely to witness robust growth, is Steadfast’s specialty. Carriage House is a particularly great fit with that strategy, the company reported.
The 46-year-old Carriage House Apartments sits on more than eight acres about 43 miles north of Chicago. Carriage House features 17 two-story buildings.
Its one- and two-bedroom floor plans average 653 square feet. Residents pay an average of $741 per month in rent. Community amenities range from swimming pool with sundeck and pool house with locker room to laundry facilities, the company said.
STAR III proposes to launch what it calls a moderate value-enhancement strategy for all unit interiors, including new appliances, upgraded bathroom and kitchen counters, fresh paint and upgraded flooring. Improvements to the common areas are to include improved curb appeal.
“The community is approximately 98 percent occupied and well-positioned within the market,” says Star III president Ella Shaw Neyland.
“We intend to target quality, mid-tier assets and seek opportunities to convert good properties into better ones by introducing our extensive institutional resources.”