Steadfast Passes 10,000-Unit Mark with Two Apartment Acquisitions

Steadfast Income REIT buys two properties for $92 million; Beech Street Capital closes $19.9 million for a fractured property in Florida; and Johnson Capital arranges a $6.1 million loan for a resort property in North California.

Meritage at Steiner Ranch

Austin & Grand Prairie, Texas—Steadfast Income REIT has crossed the 10,000-unit milestone thanks to its two most recent acquisitions. The deals, which were separate transactions, totaled 762 units and carried an aggregate purchase price of approximately $92 million.

“We have increased our concentration in Texas this year,” says Kyle Winning, chief investment officer of Steadfast Companies. “However, when you consider that Texas has created more than four of every 10 new jobs in America since the recession ended, we believe the demand for housing will outpace new supply for the foreseeable future.”


Meritage at Steiner Ranch

Meritage at Steiner Ranch, a 502-unit community located in the Steiner Ranch master planned community in Austin, was purchased for $80 million. It was 93 percent occupied at the time. The asset represents Steadfast’s third property in Austin, and features a community amenity package that includes indoor and outdoor swimming pools, an on-site day spa, tanning room, 24-hour gated entry and housekeeping services.

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The Belmont

The Belmont, a 260-unit asset located in the Dallas/Fort Worth suburb of Grand Prairie, was picked up for $12.1 million. The 98 percent occupied property features swimming pools, a tennis court, barbecue and picnic areas, a clubhouse, and a fitness center.

With these latest acquisitions, the REIT has acquired over 10,000 apartment homes in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio, Tennessee and Texas for approximately $912 million.

Beech Street Capital closes $19.9M for Florida fractured condos

Colonnade ApartmentsSunrise, Fla.—Beech Street Capital has closed a $19.9 million loan to refinance Colonnade Apartments, a 230-unit garden-style apartment community in Sunrise, Fla. The floating-rate loan has a three-year term with a one-year extension option. Beech Street utilized its relationship with City National Bank to create a structure that would allow the borrower to refinance their existing debt while providing them with a future funding component and flexible prepayment terms. Once all the units are repurchased the borrower will have options for sale or refinance with a minimal prepayment penalty.

Community amenities at the property include a swimming pool and spa, fitness center, business center, garage parking, a lounge, gated access, outdoor gathering/barbecue areas, and a clubhouse.

Johnson Capital arranges $6.1M loan for No Cal resort property

CostanoaPescadero, Calif. – Johnson Capital announced that Gary Braun, Senior Vice President of the firm’s Irvine, Calif. office, has arranged a $6.1 million loan secured by a mixed-use resort property near the San Mateo County community of Pescadero, Calif.

The property, known as Costanoa, contains 52 guest rooms, 10 cabins, RV sites, an on-site restaurant, meeting space and other amenities. Its mission is providing “an eco-adventure resort where our guests can simply retreat from the chaos of everyday life and discover the pace of nature.”

Costanoa is located on Highway 1 near the Ano Nuevo State Reserve 25 miles north of Santa Cruz and 17 miles south of Half Moon Bay. Costanoa is within easy driving distance of Silicon Valley and captures significant clientele from various high-tech companies.

The loan was provided by a regional credit union and has a 10-year term with a 30-year amortization schedule. During the first five years, the interest rate is fixed below 5 percent.

Costanoa is owned and operated by an experienced owner and manager of resort properties throughout California.  Since acquiring Costanoa several years ago the owner has upgraded and expanded the property facilities.

Commenting on the transaction, Braun said, “The unique location and mixed-use nature of the improvements presented significant obstacles to generating interest from most lenders, but the strong sponsorship profile and the property’s operating history and trends enabled us to find financing that appealed to the borrower.”