Irvine, Calif.—Steadfast Apartment REIT acquired the 217-unit Fielder’s Creek Apartments in a Denver submarket for an all-cash purchase of $32.4 million. The property is located in Englewood, which is just nine miles from downtown Denver, and the REIT plans to make some upgrades to the community.
Steadfast terminated its IPO on March 24, and said it intends “to use substantially all of the net proceeds” from the IPO “to invest in and manage a diverse portfolio of multifamily properties located in targeted markets throughout the United States,” according to the REIT‘s 10-K from March 29. The company also said in the 10-K that it may also “make selective strategic acquisitions of other types of commercial properties.” Steadfast has now invested about $1.3 billion in 31 properties in 11 states.
With its latest acquisition, Steadfast‘s portfolio “is largely complete,” Ella Shaw Neyland, president of Steadfast, told MHN. “As we look to deploy the remaining capital raised during our continuous public offering, we will continue with our strategy of investing in markets that exhibit above-average job growth, healthy middle-class incomes and increasing household formation among potential renters.”
Strong job job growth and rent demand are also what led Steadfast to purchase Fielder’s Creek.
“Denver is a job destination city for Millenials. It combines a rich quality of life for out door activities with a strong diversified job market. In particular, the Denver Southwest apartment submarket where Fielder’s Creek is located is thriving,” Neyland explained. “In fact, rent growth in that area was 6.2 percent year-over-year as of third-quarter 2015.”
Fielder’s Creek is also close to public transportation being just two miles from Englewood CityCenter Light Rail Station that runs to downtown Denver and Union Station. The East Line will also begin operations this year, providing residents with access to Denver International Airport. The Denver Tech Center, the largest job corridor in metro Denver with nearly 423,000 employees, is also minutes away from the property.
The 7-acre Fielder’s Creek was constructed in 1983 and offers a mix of studio, one- and two-bedroom homes at an average of 787 square feet. The average rent is $1,051 and the community is currently 97 percent occupied. Apartment features include washers and dryers, wood-burning fireplaces, walk-in closets and a personal balcony or patio in select units.
Building amenities include a pool, fitness center, media lounge, business center, basketball court, dog park, children’s play area and and outdoor area with barbecues.
Steadfast plans to implement its “Value Enhancement Strategy” to the property, which the company feels will increase the community’s appeal, Neyland said. Improvements will include upgrading about 40 percent of apartment interiors with new appliances, bathroom and kitchen cabinets, countertops, lighting, flooring and paint. The rest of the apartment homes were recently renovated by the previous owner, according to Steadfast. The company will also make some improvements to the common areas and amenities.
This acquisition marks Steadfast’s sixth property in Colorado. It also owns PeakView by Horseshoe Lake in Loveland, PeakView at T-Bone Ranch in Greeley, Oasis in Colorado Springs, as well as Bella Terra at City Center and Hearthstone at City Center, both in Aurora.
Images courtesy of Steadfast Apartment REIT