TODAY’S DEALS: Steadfast Adds $56M in Apartment Assets to Portfolio
Steadfast Income REIT acquires 633 units; ARA brokers a 271-unit sale in San Antonio; and Johnson Capital’s Denver office arranges a $10.8 million 35-year FHA permanent loan.
Birmingham, Ala. & Carrollton, Texas—Steadfast Income REIT has continued its recent acquisition spree with the purchase of two apartment communities for an aggregate purchase price of $56.4 million. The two separate transactions include Tapestry Park in Birmingham, Ala., and Dawntree in Carrollton, Texas, a suburb in the Dallas/Fort Worth Metroplex. The news comes less than a week after Steadfast announced it surpassed the 10,000-unit mark with two acquisitions in Texas.
“We have purchased over $950 million in apartment communities targeting the central corridor of the United States,” says Ella Shaw Neyland, president of Steadfast Income REIT. “When the REIT launched three years ago, our investment strategy was unique; however, we increasingly believe our approach has proven to be based on sound reasoning. People are moving to the central part of the country to find jobs and a good quality of life at a reasonable cost.”
Tapestry Park represents Steadfast’s entrée into Alabama. The newly built 223-unit community is located five miles east of downtown Birmingham. The first move-in occurred last September, and the property is currently 94 percent occupied. The asset carried a $32.4 million sale price. Amenities include a swimming pool, spa, fitness center, outdoor fireplace with lounge, clubhouse with media center, a barbecue area and a dog park.
Dawntree is Steadfast’s fifth purchase in Dallas/Fort Worth. The 400-unit property is 97 percent occupied and was purchased for $24 million. Steadfast plans to continue an interior upgrade program when turning over units between residents. Amenities include swimming pools, a tennis court, barbecue and picnic areas, a clubhouse and a fitness center.
San Antonio apartment community trades hands
San Antonio—ARA has brokered another multifamily transaction with the sale of Vista Ridge, a 271-unit community located in San Antonio. The firm represented the seller, New Jersey-base Raia Properties, in the transaction. The buyer was an undisclosed private investment firm.
“Vista Ridge was sought after by institutional and private wealthy investors seeking a core investment opportunity,” says Patton Jones, a San Antonio-based broker with ARA. “Investors were drawn to the affluent demographics, outstanding product finishes, and the high-end retail and entertainment of the Shops at La Cantera and The Rim.”
The 2007-built property is located minutes from the University at San Antonio and the South Texas Medical Center. Vista Ridge was 95 percent occupied at the time of sale, and features a community amenity package including a business center, swimming pool with sun deck and a fitness center.
Johnson Capital’s Denver office arranges a $10.8M FHA 35-year permanent loan
Ft. Wayne, Ind.—Johnson Capital announces that Scott Graber, senior vice president in the firm’s Denver office, has arranged a $10.8 million loan secured by a 582-unit multifamily property in Ft. Wayne, Ind.
The property, called Willow Creek Crossing, is located on Lakeridge Drive and was built in three phases between 1971 and 1987. It is a garden-style apartment community on more than 43 acres providing substantial open space for the residents. It is owned by a local operator.
The debt, provided by Huntoon Hastings, a Johnson Capital subsidiary, is a permanent non-recourse Section 223(f) FHA-loan with a 35-year term, 35-year amortization schedule and a fixed interest rate below 3 percent.
Commenting on the transaction, Graber says, “As a lender, it is always refreshing to see borrowers with long-term commitments to projects. The borrowers on this property constructed the project over 37 years ago and have remained with the project since then. The owners intend on renovating the clubhouse as well as the interior and exterior elements with a portion of the funds to ensure a quality apartment community for years to come.”