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Steadfast Apartment REIT Closes $1.1 Billion Offering, Declares $14.46 NAV Per Share

Steadfast Apartment REIT, Inc., a publicly registered non-traded real estate investment trust, has closed its $1.1 billion initial public offering and approved an estimated value of the company’s common stock of $14.46 per share, as of December 31, 2015.

The company commenced its initial public offering in December 2013 and sold shares of common stock for $15.00 each and DRIP shares for $14.25 each. Prior to closing its offering, the REIT raised $691 million in investor equity and continues to offer DRIP shares at $14.46 each, effective May 1, 2016.

The company engaged CBRE Capital Advisors Inc., a broker-dealer firm that specializes in providing real estate financial services, to conduct property-level and aggregate valuation analyses on its 30 apartment community properties, as of December 31, 2015. The properties had a total purchase price of $1.24 billion and were funded from proceeds from the public offering and $802 million in secured financings.

CBRE Capital Advisors proposed a valuation range between $13.44 and $15.50 per share, and the board of directors adopted $14.46 as the estimated NAV per share of its common stock.

“We believe this estimated value per share reflects one of the non-traded REIT industry’s best valuations relative to initial share price in the shortest time since escrow break,” said Ella Neyland, president of Steadfast Apartment REIT. “We feel this highlights the successful execution of our strategy of bringing institutional-quality management to our portfolio of apartment properties, and then making comparatively minor aesthetic improvements that have a significant impact on the property’s revenue and resale value.”

Steadfast Apartment REIT has invested more than $1.25 billion in 31 apartment communities in 11 states, to date. The REIT is sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies, an Orange County, California-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico.

For more Steadfast related news, visit their directory page here.