Steadfast Apartment REIT Enters a New Market

Steadfast Apartment REIT enters a state for the first time; and strong Denver fundamentals encourage refinancing.

Irvine, Calif.—Steadfast Apartment REIT announced the acquisition of Arbors at Brookfield, a 702-unit apartment community in Mauldin, S.C., less than eight miles from the Greenville CBD, for $66.8 million. The acquisition marks Steadfast Apartment REIT’s entry into South Carolina and it has now invested more than $687 million in 18 apartment communities in nine states.

“Arbors at Brookfield is a strong addition to the Steadfast Apartment REIT portfolio,” said Ella Neyland, president of Steadfast Apartment REIT. “Located in a thriving submarket with positive fundamental gains, we believe it represents a quality asset with untapped potential.”

Constructed in four phases between 1989 and 1997 on 50 acres, Arbors at Brookfield comprises 35 two- and three-story buildings, in addition to multiple clubhouses, a fitness center, three swimming pools, a sand volleyball court, a business center, tennis courts, a dog park and media room. One-, two- and three-bedroom units ranging from 800 to 1,400 square feet in 11 different floorplans offer residents flexible living options. Select apartment homes are upgraded with wood-burning fireplaces, sunrooms, exterior storage closets and pantry closets. Arbors at Brookfield is currently 94.9 percent occupied with an average rent of $766.

Steadfast Apartment REIT plans to upgrade the units at Arbors at Brookfield with new appliances, countertops, flooring, plumbing fixtures, hardware and new doors and cabinet boxes. In addition to interior upgrades, moderate enhancements and upgrades will be made to the model unit, leasing office, volleyball court, tennis courts and fitness center. One of the clubhouses will be converted into a resident relations center.

The city of Mauldin is located within the Greenville-Anderson-Mauldin MSA—the largest MSA in the state—and is sustained by a strong employment pool and expanding economies. New developments have occurred in close proximity to Arbors at Brookfield, including the construction of the 300,000-square-foot TD Bank campus and the Millennium Campus, a 500-acre project that is expected to cater to technology-driven industries. Served by I-385, Mauldin enjoys close proximity to Greenville, which is the North American headquarters for Hubbell Lighting, PerceptIS and Michelin.

Strong Denver fundamentals encourage refinancing

Terra Vida_Debt Request v2

Terra Vida

Denver & Fort Collins, Colo.—M&T Realty Capital Corp. has provided $77.5 million to refinance two apartment communities in the Greater Denver area. HFF announced today that it was able to secure the two separate transactions for Jeffrey Sanders, who operates MountainView Capital in Boulder, Colo.

A $36.9 million, 20-year, 3.95 percent fixed-rate loan was secured for Terra Vida and a $37.9 million, 20-year, 3.98 percent fixed-rate loan was secured for Block 32 at RiNo. Both loans will be used to refinance existing HUD debt on the properties that were assumed at acquisition.

Finding money to refinance in Denver is certainly helped out by the fact that rents have increased nearly 24 percent over the past two years, according to Yardi Matrix. The fact that both properties are over 96 percent leased doesn’t hurt either.

Terra Vida is located at 3707 Precision Dr. in Fort Collins near I-25, about eight miles from Colorado State University’s main campus. The 2012-built asset has 240 units. Amenities include a junior Olympic pool and a 5,400-square-foot clubhouse with a fitness club, pet washing station, pool table and Wi-Fi.

Block32 at RiNo 3200 Brighton Blvd. Denver River North

Block32 at RiNo

Block 32 at RiNo is located at 3200 Brighton Blvd. in Denver’s River North (RiNo) submarket, about two miles from downtown Denver’s Union Station. The project opened in 2014, and features a pool with hot tub, poolside bar, landscaped courtyard with fire pits and ping pong, a barbecue area, dog park, fitness center, community kitchen, pool tables, a lounge and a business center.

The HFF debt placement team representing the borrower was led by managing director Josh Simon and real estate analyst Kristian Lichtenfels.