Steadfast Income REIT, Inc. acquired Meritage at Steiner Ranch in Austin for $80 million and The Belmont in the Dallas/Fort Worth Metroplex for $12 million, pushing its portfolio to more than 10,000 units in 43 apartment communities in 10 Midwestern and Southern states.
“Our business plan was very unique from the very beginning because Steadfast decided to acquire apartment communities in the central corridor of the U.S. where businesses were moving, the local economies did not go down so far during the recession and in many cases, have recovered all of the jobs lost during the recession,” Ella Shaw Neyland, Steadfast Income REIT’s president, told Commercial Property Executive. “All of these recent acquisitions are right in line with that plan and philosophy of buying where people want to live and work.”
Meritage at Steiner Ranch contains 502-units and is located within the upscale Steiner Ranch master planned community in Austin. The property consists of one-, two-, three- and four-bedroom apartment homes, each with an attached one- or two-car garage, set amongst a sprawling 117-acre site.
“Meritage is a signature community in a sought-after neighborhood in one of the fastest job growth markets in America,” Neyland said. “Millennials, which are the fastest growing segment of renters, want to be in Austin because they can find jobs in technology, finance, energy, education and health care.”
Residents are able to take advantage of a full complement of amenities that include an on-site day spa, concierge service, tanning room, 24-hour gated entry, indoor and outdoor swimming pools, housekeeping services and valet dry cleaning and laundry service. Steadfast’s business plan includes upgrading some of the interiors and enhancement of public areas.
The Belmont, Steadfast’s fourth property in the Dallas/Fort Worth Metroplex, contains 260 units and consists of three-story buildings with a mix of one- and two-bedroom apartments.
“The Belmont is in a strong submarket and adds to our concentration in that market, which creates operating efficiencies and improved profitability from operations,” Neyland added.
Many of the apartment homes feature kitchen pantries, washer/dryer connections, fireplaces, upgraded appliances, private outdoor storage and balconies and patios. The community offers several amenities including swimming pools, a tennis court, barbeque and picnic areas, a clubhouse, and a fitness center.
According to Neyland, Governor Rick Perry recently stated that 30 percent of all jobs created in the last decade have been in Texas and Steadfast’s research confirms that businesses are increasingly locating to the state because of an above average standard of living, lower costs, no state income tax and a business friendly environment.
“Overall, in all of our target markets, we see a very strong demand for apartments that we think will continue into the next few years,” Neyland concluded. “As the economy recovers and more jobs are created, people will move to be where those jobs are. They are in the central corridor of America.”
In total, 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.