Steadfast Apartment REIT Enters the Denver Market
Steadfast Apartment REIT, a publicly registered non-traded real estate investment trust sponsored by Steadfast REIT Investments LLC, purchased two apartment communities for an aggregate purchase price of $91 million. The two properties, Bella Terra at City Center and Hearthstone at City Center, are located in the Denver suburb of Aurora, CO.
“Denver and its surrounding cities are experiencing solid economic fundamentals compared to other national cities. This includes employment, population growth and renter demand,” said Ella Neyland, president of Steadfast Apartment REIT. “Strong employment is a key driver in Steadfast’s acquisition strategy, and Denver’s unemployment rate fits into Steadfast’s target markets when acquiring apartment communities. Additionally, limited new apartment construction in the Aurora submarket should keep demand healthy for Bella Terra at City Center and Hearthstone at City Center for the foreseeable future.”
Bella Terra at City Center is a 304-apartment home community constructed in 1980 on nearly 11 acres. Comprised of 15 two- and three-story garden-style buildings, residents have an option of studio, one- or two-bedroom homes averaging 676 square feet with an average rent of $917. Site amenities include a clubhouse, fitness center, swimming pool with spa, business center, outdoor basketball court, playground and a picnic area with BBQ stations. Bella Terra at City Center is currently 98 percent occupied.
Hearthstone at City Center stands two miles away from Bella Terra and was built in 1984. Hearthstone features 360 apartment homes with one-, two- and three-bedroom apartments in five different layouts ranging from 720 to 1,501 square feet. Average in-place rents are $1,038. The property also includes many amenities such as a fitness center, swimming pool, business center, and a playground with a basketball court.
Both properties will undergo a moderate revitalization strategy to its unit interiors and exterior common areas.
Bella Terra at City Center and Hearthstone at City Center benefit from their close proximity to the Denver Tech Center Business Corridor, Denver’s largest employment hub consisting of more than 40 million square feet of office space. Prominent area employers include Samsonite, Molson Coors Brewing Company, United Airlines and the 578-acre Life Sciences medical campus which is undergoing a $4.3 billion transformation. Additionally, a local light rail is expanding and will link Aurora to key regional rail routes between the East and Southeast rail lines when it opens in 2016.
Steadfast Apartment REIT has now invested more than $620 million in 17 apartment communities in eight states, which includes three properties in Colorado totaling 916 apartment homes.
Steadfast Apartment REIT is sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies, an Orange County, CA-based group of affiliated real estate investment and operating companies that acquire, develop, and manage real estate in the U.S. and Mexico.
