Steadfast REIT Purchases $63M Denver Asset
The acquisition of Belmar Villas marked the REIT's sixth multifamily purchase. The 318-unit community comprises 17 three-story buildings featuring one-, two- and three-bedroom floorplans that will soon undergo renovations.
By IvyLee Rosario
Steadfast Apartment REIT III Inc. (STAR III) acquired Belmar Villas, a garden-style property in the Denver submarket of Lakewood, for $63.3 million. This is the sixth residential community acquired by STAR III in under two years, since the investment trust was created.
Located at 700 South Reed Court, the 318-unit community comprises 17 three-story buildings that feature one-, two- and three-bedroom floorplans ranging from 580 to 1,114 square feet. Originally built in 1971, the property’s interiors include stainless steel appliances, hardwood-style flooring, updated lighting, walk-in closets, ceiling fans, central air and private balcony/patios. Residents have access to amenities such as a business center, clubhouse, two resort-style heated pools, outdoor hot tub, state-of-the-art fitness center, playground, barbecue grills and fire pits, internet cafe, on-site laundry, spa and tennis, volleyball and basketball courts. The pet-friendly asset also offers 620 parking spaces with covered options available. Belmar was 93 percent occupied at the time of purchase and rents range from $1,175 to $1,846, according to Yardi Matrix.
Renovation Plan
The previous owners renovated a quarter of the units and now, as part of the Steadfast Value Enhancement Strategy, STAR III plans to renovate the remaining apartment interiors to include:
- an upgraded appliance package
- laminate countertops
- new plumbing fixtures
- vinyl wood flooring and carpeting
- new paint
- ceiling fans
- upgraded lighting
“We believe the Denver area is a great match for the investment objectives of Steadfast Apartment REIT III, which targets mid-tier multifamily properties in growing communities,” said Ella Neyland, president of Steadfast Apartment REIT III Inc., in prepared remarks. “Belmar Villas is our second property in the Denver metropolitan area, which was recently recognized by National Real Estate Investor as a top market for multifamily investment.”
Belmar Villas is in close proximity to downtown Denver, Denver International Airport, the RTD light rail system and the Belmar Shopping District, which features more than 100 restaurants and shops. This acquisition has brought STAR III’s investment total to more than $242 million, with six multifamily properties in Colorado, Georgia, Illinois and Texas, totaling 1,530 units.
Images courtesy of Belmar Villas
