AUSTIN-Steadfast Income REIT Inc. has expanded its portfolio by 762 units with its buys of the local Monterone Steiner Ranch and the Belmont in Grand Prairie, TX. The Irvine, CA-based REIT paid approximately $92 million for both properties.
Monterone Steiner Ranch at 4500 Steiner Ranch Blvd. has 502 units, was bought for $80 million and is the REIT's third Austin-area buy. The 93%-occupied multifamily property has one-, two-, three- and four-bedroom units.
“The Steiner Ranch property presented us with an opportunity to acquire a premier asset in what we believe to be an exceptional growth market,” says Kyle Winning, chief investment officer of Steadfast Companies. “We see significant upside potential in upgrading the unit interiors and will immediately launch a $4 million capital enhancement project that will also address exterior deferred maintenance.”
The REIT also plans on rebranding the property, and will rename it Meritage at Steiner Ranch.
The 260-unit Belmont, in Grand Prairie, is at 1920 W. Tarrant Rd. The multifamily property offers a mix of one- and two-bedroom units, with average in-place rents of $700. Steadfast purchased the 98% occupied property for $12.1 million. The Belmont is the fourth property Steadfast has purchased in the Dallas-Fort Worth Metroplex.
“We have increased our concentration in Texas this year,” Winning says. “However, when you consider that Texas has created more than 4 of every 10 new jobs in America since the recession ended, we believe the demand for housing will outpace new supply of the foreseeable future.”
With these latest acquisitions, the REIT has acquired over 10,000 apartment homes in Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio, Tennessee and Texas for approximately $912 million.
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