CHICAGO—The first two REITs associated with Steadfast Cos. have built up portfolios with billions in assets, and the Orange County-based group has just launched its third fund, Steadfast Apartment REIT III, Inc., by acquiring its first community, Carriage House Apartments, a 136-unit complex located in suburban Gurnee, for $7.6 million. Steadfast has specialized in the purchase and renovation of value-add communities, many in secondary metro areas that it expects to strong growth, and Carriage House fits the bill.
“Steadfast Apartment REIT I, Steadfast Apartment REIT II, and Steadfast Apartment REIT III follow very similar strategies,” Ella Shaw Neyland, president of STAR III, tells GlobeSt.com. This third fund “will continue with our strategy of investing in markets that exhibit above-average job growth, healthy middle-class incomes and increasing household formation among potential renters.
“We believe that if you provide residents with convenient access to all facets of the 'live, work, play' lifestyle that they will 'stay' as a resident for longer,” she adds. ”Given that over 80% of the new product that has been delivered recently is considered luxury product—with a monthly rent to match—Steadfast Apartment REIT III will seek a competitive edge by buying quality, middle-market properties and making selective upgrades that bring many of the modern amenities residents seek at a price point that is affordable to the average American.”
Constructed in 1970 on 8.44 acres about 43 miles outside of Chicago, Carriage House is 98% occupied and comprises 17 two-story buildings with one- and two-bedroom layouts that average 653 square feet. Tenants pay an average of $741 per month. Community amenities include a swimming pool with sundeck, pool house with a locker room, picnic area, laundry facilities and additional storage.
STAR III plans to initiate what it calls a moderate value enhancement strategy for all unit interiors, including new appliances, upgraded bathroom and kitchen counters, fresh paint and upgraded flooring. Select improvements to the common areas will include improving the community's curb appeal.
Just minutes off I-94, I-88, I-294 and I-90, Carriage House is within Chicago's Lake County submarket, an area filled with many top US employers such as Abbott Laboratories, AbbVie, Solo Cup Co., HSBC Finance, and Diners Club International. In addition, residents have two area schools within walking distance and quick access to Gurnee Mills, the largest outlet destination in IL.
Steadfast's first two REITs, Steadfast Income REIT and Steadfast Apartment REIT, have, respectively, portfolios of $1.8 billion and $1.3 billion.
CHICAGO—The first two REITs associated with Steadfast Cos. have built up portfolios with billions in assets, and the Orange County-based group has just launched its third fund, Steadfast Apartment REIT III, Inc., by acquiring its first community, Carriage House Apartments, a 136-unit complex located in suburban Gurnee, for $7.6 million. Steadfast has specialized in the purchase and renovation of value-add communities, many in secondary metro areas that it expects to strong growth, and Carriage House fits the bill.
“Steadfast Apartment REIT I, Steadfast Apartment REIT II, and Steadfast Apartment REIT III follow very similar strategies,” Ella Shaw Neyland, president of STAR III, tells GlobeSt.com. This third fund “will continue with our strategy of investing in markets that exhibit above-average job growth, healthy middle-class incomes and increasing household formation among potential renters.
“We believe that if you provide residents with convenient access to all facets of the 'live, work, play' lifestyle that they will 'stay' as a resident for longer,” she adds. ”Given that over 80% of the new product that has been delivered recently is considered luxury product—with a monthly rent to match—Steadfast Apartment REIT III will seek a competitive edge by buying quality, middle-market properties and making selective upgrades that bring many of the modern amenities residents seek at a price point that is affordable to the average American.”
Constructed in 1970 on 8.44 acres about 43 miles outside of Chicago, Carriage House is 98% occupied and comprises 17 two-story buildings with one- and two-bedroom layouts that average 653 square feet. Tenants pay an average of $741 per month. Community amenities include a swimming pool with sundeck, pool house with a locker room, picnic area, laundry facilities and additional storage.
STAR III plans to initiate what it calls a moderate value enhancement strategy for all unit interiors, including new appliances, upgraded bathroom and kitchen counters, fresh paint and upgraded flooring. Select improvements to the common areas will include improving the community's curb appeal.
Just minutes off I-94, I-88, I-294 and I-90, Carriage House is within Chicago's Lake County submarket, an area filled with many top US employers such as
Steadfast's first two REITs, Steadfast Income REIT and Steadfast Apartment REIT, have, respectively, portfolios of $1.8 billion and $1.3 billion.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
