Steadfast Income REIT Acquires Luxury Property
- May 14, 2012
Oklahoma City—Steadfast Income REIT Inc. has made its second Oklahoma City-area acquisition of the young year. On May 2, it announced it had finalized the $35.75 million acquisition of 360-unit Montclair Parc in Oklahoma’s capital city.
Montclair Parc is comprised of 18 three-story residential buildings spread across a 22-acre site. It features a mix of one-, two- and three-bedroom apartments averaging 924 square feet in size, and monthly rents average $883.
Luxury amenities include entry card access to the gated community, resort-style swimming pool with heated spa and 24-hour fitness facility.
Apartments feature fully equipped kitchens, full-size washer/dryer connections and private terraces or patios. Many units offer attached garages, 9-foot ceilings, oval Roman tubs and wood-burning fireplaces with custom mantels.
Located in an upscale submarket 12 miles south of downtown Oklahoma City, Montclair Parc is served by one of the state‘s strongest school systems. The submarket also offers transportation convenience to employment centers, medical centers and an array of shopping venues.
Several primary factors attracted Steadfast to this property. “Number one is the central location,” Christopher Hilbert, Steadfast executive vice president, real estate operations, tells MHN.
“Number two is the high quality of construction. The physical aspect of the asset, built by Fairfield Residential between 1999 and 2000, is very high end. Other factors include a strong tenant base and good management in place.”
Steadfast needed little prodding to make additional investments in the Oklahoma City area, a metro that has expanded beyond its traditional base in oil, natural gas and petroleum products to embrace the information technology, services, health care and administration sectors of the U.S. economy.
“It’s got market-leading job growth, and vacancies have fallen fairly significantly,” Hilbert says. “Depending on what data you examine, there’ll be opportunity for fairly strong rent growth through 2016. And what’s really driving this is the area is a job growth engine. Jobs are growing there, and they’re growing faster there.”
Oklahoma City appears prominently on lists of the most desirable cities in the United States, he adds. For instance, the city placed number one on Forbes’s Most Affordable Cities in 2010 and number five on its Best Job Market 2011 list.
“Suffice it to say, I love Oklahoma City, and I love Tulsa,” Hilbert says. “I love the resurgence that’s going on throughout the middle of America. You’re got agriculture, you’ve got energy production, you’ve got manufacturing.”
Steadfast Income REIT has a strong pipeline of acquisitions, and is focused on clusters of properties in markets like Oklahoma City for the economies of scale they engender. “We’re seeing strong dividend growth in our portfolio, and strong return to our investors,” Hilbert says.