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.”