Steadfast is set to launch its second public, non-traded REIT, Steadfast Apartment REIT, Inc. The SEC declared its registration effective December 30, 2013 and the initial public offering began the following day.
Steadfast Apartment REIT, Inc. (the REIT) intends to qualify as a REIT for tax purposes and is offering up to $1 billion of shares in common stock at $15 per share. Under its distribution reinvestment plan, it is offering up to an additional $100 million in shares of its common stock at $14.25 per share. This makes the initial public offering a total of $1.1 billion.
With the proceeds of the offering, the REIT plans to invest in institutional-quality apartment communities throughout the United States. It will aim for targeted markets that have demonstrated high occupancy and income levels across market cycles.
Steadfast states, “We will seek opportunities to convert good properties into better ones, by bringing our institutional resources to under-managed real estate. We anticipate that a portion of our overall portfolio will include properties that offer value-enhancement opportunities through renovation and repositioning.” The REIT will target apartments in neighborhoods that are close to employment centers.
Steadfast Apartment REIT’s sponsor is Steadfast REIT Investments, LLC, a limited liability corporation based in Delaware. Steadfast Companies’ corporate office is located in Irvine, California and its members include Steadfast REIT Holdings, LLC, and Crossroads Capital Group, LLC.
Steadfast Companies has sponsored 38 privately offered prior real estate programs, as well as one public, non-listed REIT, Steadfast Income REIT, which raised $731 million in gross proceeds through its primary offering before closing December 20, 2013.