California REIT nabs Austin apartments in $45 million deal

Sep 8, 2014
Austin Business Journal

A newly formed real estate investment trust has purchased two Austin apartment complexes in separate transactions for a total of $45 million

Steadfast Apartment REIT, based in Orange County, California, purchased the Club at Summer Valley for $21.5 million exclusive of closing costs and Terrace Cove for $23.5 million exclusive of closing costs

The Club at Summer Valley is located at 744 West William Cannon Drive. The 260-unit apartment community sits on nine acres and was built in 1983. At the time of closing it was 98 percent occupied. Terrace Cove at 6201 Sneed Cove includes 304 units on 13 acres and was built in 1986. It also was 98 percent occupied at closing

Charles Cirar of CBRE Group Inc. handled the transactions

The Steadfast Apartment REIT commenced operations in May 2014 and in addition to the Austin properties, includes the acquisition of an apartment community in Indianapolis and one in Spring Hill, Tennessee. The REIT is an affiliate of the Steadfast Cos., which has a long history of commercial real estate investment

Another affiliate, Steadfast Income REIT owns four other Austin area properties — Meritage at Steiner Ranch, Trails at Buda Ranch, Montecito in southeast Austin and Montelena in Round Rock

The seller was not disclosed, but records at the Travis Central Appraisal District indicate both properties were owned by Stonemark S/SV LP in Atlanta. Stonemark purchased the properties in 2007

Steadfast Apartment REIT intends to raise more than $1 billion through its current share offering, which commenced earlier this year

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