Home News Steadfast Apartment REIT Invests $117 Million in Three TX Multifamily Properties

Steadfast Apartment REIT Invests $117 Million in Three TX Multifamily Properties

Steadfast Apartment REIT, a publicly registered non-traded real estate investment trust, acquired three multifamily communities in Texas for a combined purchase price of $117.3 million, exclusive of closing costs.

The company acquired the Regency at North Richland Hills to be renamed The Delano at North Richland Hills; the Regency on the Green to be renamed The Meadows at North Richland Hills; and the Regency by the Vineyard to be renamed Kensington by the Vineyard. The Delano property, the Meadows property and the Kensington property were acquired from third-party selling entities ultimately controlled by the same parent company.

The Delano at North Richland Hills is a 263-unit multifamily community in North Richland Hills, Texas. The property, which is 97.3 percent occupied, was constructed in 2003 and is comprised of one-, two-, three-, and four-bedroom apartments that average 1,231 square feet with an average monthly rent of $1,287.

Steadfast acquired the Delano property for an aggregate purchase price of $38.5 million, exclusive of closing costs. The acquisition was financed with a combination of proceeds from the company’s ongoing public offering and an advance of $28.9 million from a revolving credit facility with PNC Bank NA. An acquisition fee of approximately $413,000 was paid to Steadfast Apartment Advisor LLC in connection with the acquisition, as well as a loan coordination fee of approximately $288,750.

The Meadows at North Richland Hills is a 252-unit multifamily community in North Richland Hills, Texas. The property, which is 97.6 percent occupied, was constructed in 1999 and is comprised of two-, three- and four-bedroom apartments that average 1,140 square feet with an average monthly rent of $1,209.

Steadfast acquired the Meadows property for an aggregate purchase price of $32.6 million, exclusive of closing costs. The acquisition was financed with a combination of proceeds from the company’s ongoing public offering and an advance of $24.5 million from the revolving credit facility. An acquisition fee of approximately $351,000 was paid to the advisor, as well as a loan coordination fee of approximately $244,500.

Kensington by the Vineyard is a 259-unit multifamily residential community in Euless, Texas. The property, which is 95.8 percent occupied, was constructed in 1997 and is comprised of one-, two-, three-, four-bedroom apartments that average 1,077 square feet with an average monthly rent of $1,552.

Steadfast acquired the Kensington property for an aggregate purchase price of $46.2 million, exclusive of closing costs. The acquisition was financed with a combination of proceeds from the company’s ongoing public offering and a loan in the aggregate principal amount of $34.2 million. An acquisition fee of approximately $466,000 was paid to the advisor, as well as a loan coordination fee of approximately $342,250.

Steadfast Management Company Inc. will serve as the exclusive leasing agent and manager of the properties and will be paid a monthly management fee equal to 2.75 percent of the property’s gross collections. The Management agreement has an initial term that expires on August 26, 2016.

Steadfast also entered into a construction management services agreement with Pacific Coast Land & Construction Inc. and will be paid a construction management fee in an amount equal to 8 percent of the total cost of the improvements and renovations.

Steadfast Apartment REIT is a real estate investment trust sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies. As of June 30, 2015, Steadfast Apartment REIT owned 18 multifamily properties comprising a total of 6,165 apartment homes valued at $687.3 million, based on aggregate purchase price.


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