Steadfast Income REIT Acquires 424-Unit Asset
- Feb 02, 2012
Cedar Rapids, Iowa—Steadfast Income REIT Inc. has acquired Windsor on the River, a 424-unit community located in Cedar Rapids, Iowa, for a purchase price of $33 million. The acquisition brings the REIT’s nine-property portfolio value to over $100 million.
The property was built in 1982 and is currently 95 percent occupied. The unit mix consists of one-, two- and three-bedroom apartments that average 930 square feet in size. Community amenities include a fitness center, lighted tennis courts, indoor racquetball courts, an Olympic-size pool, gated underground parking and a clubhouse.
The acquisition marks the REIT’s second Iowa-area asset. In December 2010, Steadfast acquired Park Place Apartments, a high-rise located in Des Moines.
Pembrook arranges $32M rehabilitation financing
Kansas City, Mo.—Pembrook Capital Management LLC has completed a $32 million tax-exempt financing transaction that facilitates Antheus Capital’s redevelopment of a 600-unit apartment portfolio in Kansas City, Mo.
“On a difficult deal in challenging times, it was incredibly important to assemble the right team to execute our financing,” says Eli Ungar, a partner with Antheus. “We’re very happy with the ultimate results.”
Known as the Commonwealth Portfolio, the 600-unit group of 11 historic prewar buildings has been acquired by an affiliate of Artheus Capital LLC for $60.5 million. The properties, while largely unoccupied at the moment, are in a well-located emerging area of Kansas City. The developer is renovating the entire portfolio, which will be brought back to the market as rentals in a neighborhood that is becoming popular with young professionals.
Marcus & Millichap completes $2.2M sale at 8.1% cap
Panorama City, Calif.—Rick Raymundo of Marcus & Millichap Real Estate Investment Services completed the sale of 14612-14626 Blythe Street, a 28-unit multifamily property in Panorama City, Calif.
The buildings span two adjacent parcels, covering over 36,000 square feet of land. The closing price of $2.2 million represents a value of $79,643 per unit and $100.36 per square foot.
Raymundo, a vice president/Investments in the Los Angeles office of Marcus & Millichap, represented the buyer, a private investment trust, as well as the seller, a private investor. “We were able to generate 17 offers during the listing period, which was a challenge given the reputation of Blythe Street within the investment community,” states Raymundo. “By highlighting the recent improvements in the area, including The Plant shopping center and AMCAL’s new 98-unit senior housing development on that same block, we attracted a large buyer pool to the listing.”
The buyer secured financing with Wells Fargo, which divided the two parcels and funded two separate loans for this transaction. The buildings consist of nine one-bedroom one-bathroom units, nine two-bedroom one-bathroom units, nine two-bedroom two-bathroom units and one single. The investment offered a current cap rate of 8.10 percent with a 7.06 GRM on in-place income.