NORTH RICHLAND HILLS, TX-SoCal buyer Steadfast Income REIT Inc. has entered the Dallas-Fort Worth area with its buy of the 240-unit Grayson Ridge Apartments for $14.3 million. Steadfast acquired the 1980s complex from Praedium Group LLC in New York City.
In addition to snagging Grayson Ridge at 6901 NE Loop 820, Steadfast added to its portfolio the 144-unit Rosemont Olmos Park at 401 Holland Ave. in San Antonio (purchased for $22 million from Sendera Investment Group LLC) and the 240-unit Quail North at 2701 Watermark Blvd. in Oklahoma City. The latter was acquired from Watermark Residential for $25.2 million. The total of all three transactions was approximately $62 million.
According to Steadfast chief investment officer Kyle Winning, all three assets share something in common. They're located in markets with high job and population growth, as well as limited new supply. He tells GlobeSt.com that Grayson Ridge and Rosemont Olmost Park were marketed and that Steadman actually lost the bid on Rosemont the first time around. "But the buyer couldn't close, so they came back to us," Winning says. Meanwhile, Quail North involved a transaction with a company "we'd previously purchased a property from, and will likely buy properties from in the future," Winning notes.
Steadfast is no stranger to either San Antonio or Oklahoma City, and Winning points out that the first buy in the DFW area won't be its last. "We don't go to markets to buy just one asset," he says, adding that the REIT has additional assets under contract in the region.
Plans for the acquired assets include continuing a value-add program started on Rosemont Olmos Park. Quail North, however, was just completed. "The cap rate is high because we agreed to purchase it a year ago," Winning says. "It has above-market debt that was assumed, but even with that, the cap rate was representative of where things were a year ago, but not today."
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