Irvine, Calif.—The end of 2012 was a busy time for Steadfast Income REIT Inc., as it added five apartment communities for an aggregate purchase price of approximately $115 million.
The assets were acquired in five separate transactions and include properties in Lexington, Louisville and Frankfort, Ky.; Nashville, Tenn.; and Austin, Texas.
“In the year alone we acquired a little over $500 million and we ended the year with $571 million in assets,” Ella Shaw Neyland, Steadfast Income REIT’s president, tells MHN. “Our business plan is a little unique as it is to acquire quality assets in prime locations, but in secondary markets.”
Steadfast entered two new markets with the acquisition of Keystone Farms in Nashville, Tenn., and Riverford Crossing in Kentucky’s capital city of Frankfort.
Keystone Farms consists of six residential buildings with a mix of 90 two- and three-bedroom apartments and townhomes located 20 minutes from downtown Nashville.
Acquired for $30 million, Riverford Crossing consists of 300 one- and two‐bedroom apartments and townhomes that average 1,029 square feet. Units feature fully appointed stainless steel kitchens, built-in washers and dryers, walk-in closets, central air conditioning, and many enjoy vaulted ceilings and garages.
Steadfast now has assets in 10 states, with seven of those being in capital cities.
“We tend to like capitals. The universities are there, you tend to have government-based jobs, they are close to transportation and then you have all the infrastructure that comes with it,” Neyland says. “People will look at some of our markets and wonder why we chose that particular market. Some of them show that we do take a really deep dive on the signs of vitality in these markets, which a lot of people miss.”
Steadfast added a sixth Louisville, Ky., property to its portfolio with the purchase of South Pointe at Valley Farms for $5.275 million. South Pointe is a 26-acre site that includes 32 apartment homes, a clubhouse community building and fully entitled and improved land slated for additional apartment homes.
Another Kentucky property purchased was Forty57 in Lexington, for $52.5 million. The community offers one-, two- and three-bedroom apartments and townhomes with a full complement of amenities that include garages, washer/dryer connections and contemporary kitchens with tile floors, wood cabinetry and stone back splashes. Community amenities include a clubhouse with computer café, two resort-style outdoor pools, state of the art fitness and cardio center, a 40-seat movie theatre, a volleyball court and a putting green.
The company also acquired the 268-unit Montecito in Austin, Texas, purchased for $19 million. Montecito recently underwent a $1.78 million upgrade that included renovations to buildings, site improvements and interior upgrades such as cherry wood cabinetry and wood plank flooring.
“We continue to find acquisitions that fit our business plan to focus on prime locations in secondary markets with signs of vitality in the local economy,” Neyland says. “I think the markets that we look at, there’s every reason to believe they are on an upward growth path as far as job growth.”