Irvine, Calif.—Steadfast Apartment REIT is growing its Tennessee presence with its most recent acquisition of the 724-unit Landings of Brentwood in the Brentwood submarket of Nashville. The $110 million purchase marks the REIT’s fourth acquisition in the state and sets a new record for the total dollar price paid for a multifamily property in the Nashville region.
The acquisition brings Steadfast’s portfolio to 32 properties in 11 states with an aggregate value of about $1.4 billion.
The property was attractive to Steadfast because of its location in “one of Nashville’s most desirable markets, boasting an average household income of $132,000 and a top-ranked school district,” said Ella Shaw Neyland, Steadfast’s president.
“Steadfast likes the Nashville market because of its economic strength and growing demographics. Nashville is a perfect example of a city where people can earn a good living and enjoy a great ‘live, work, play’ lifestyle,” Neyland told MHN. She added that the local multifamily market “continues to perform very well due to the approximately 12,000 new households that are added to the metro annually.”
The community is located 15 miles from the Nashville CBD and near a growing commercial corridor that is undergoing a massive expansion, including the 605-acre Berry Farms mixed-use development along I-65 and Franklin Park, a 71-acre office park.
Neyland went on to say that Landings of Brentwood has great value-add potential, which aligns with Steadfast’s strategy.
“Steadfast Apartment REIT’s strategy does feature a value enhancement component that includes upgrading apartment home interiors and select common areas we feel will bring the most value to residents seeking modern living at a price point that is affordable to the average American,” Neyland told MHN. “We like to think that Steadfast apartments are priced like a [class] ‘ B’ but feel like an ‘A’.”
The 117-acre property was originally built in three phases from 1986 to 1989, and offers 41 garden-style buildings with one-and two-bedroom floorplans. Units average 959 square feet and in-place rents of $1,136. Landings of Brentwood is currently 96 percent occupied.
Residences feature walk-in closets, washers and dryers, personal balconies or patios and wood-burning fireplaces in some units. The community offers a variety of amenities, including two swimming pools, a catch-and-release pond, two tennis courts, sand volleyball court, dog park, outdoor kitchen with grill areas, car care center and a business center.
Steadfast plans to complete a significant value enhancement program at the property, including modernizing apartment interiors and common areas with new appliances, updated cabinetry and floors, new countertops and hardware, and upgraded lighting. The company will also upgrade the pools, fitness centers, clubhouse, landscaping and volleyball court.
To hear more about the REIT’s strategies and goals, check out MHN’s exclusive interview with Steadfast President Ella Shaw Neyland.
Image courtesy of Steadfast Apartment REIT