Steadfast Apartment REIT III Inc., a publicly registered non-traded real estate investment trust, has purchased Avery Point Apartments, a 512-unit apartment-home community located in northeast Indianapolis, for approximately $44.6 million.
“We believe the Indianapolis area is a perfect fit for the investment objectives of Steadfast Apartment REIT III, which targets mid-tier multifamily properties in growing communities,” said Ella Neyland, president of Steadfast Apartment REIT III. “Particularly, the community is located in the far north side of the city, which is one of the most affluent and desirable areas and boasts some of the city’s finest homes, Class A office space, shopping, dining, and entertainment.”
Completed in 1986, Avery Point includes 58 two-story buildings with one- and two-bedroom apartment homes and two-bedroom townhomes that average 900 square feet. In-place rents average $778 per month and the community currently is 94 percent occupied.
Property amenities include a clubhouse and business center, fitness center, swimming pool, community patio with grilling stations, tennis courts, a volleyball court, covered parking and a dog park. Unit amenities include fully equipped kitchens, private patios and balconies, private entrances, walk-in closets, and fire places.
Steadfast Apartment REIT III plans to renovate 75 percent of units in the community, as the other 25 percent were recently renovated by the previous owner. The renovation will include upgrades to kitchen appliances, cabinet fixtures, faucets, kitchen counters and bedroom carpets. The company also plans on upgrading common areas and amenities, including enhancements to landscaping, signage and the fitness center.
Steadfast Apartment REIT III was formed to acquire and operate a portfolio of institutional-quality multifamily and senior-living apartment communities in targeted markets throughout the United States that have demonstrated high occupancy and income levels across market cycles. The REIT’s primary offering was declared effective by the SEC in February 2016 and raised $135 million in investor equity since inception, as of the third quarter of 2017. The company’s portfolio is comprised of 9 properties purchased for a combined $362 million.