CHICAGO—Steadfast Apartment REIT has just acquired three apartment communities in the Midwest in three separate transactions. The communities in suburban Indianapolis and suburban Chicago cost $80.8 million and have a total of 643 homes. Irvine, CA-based Steadfast has now invested over $430 million in twelve apartment communities in seven Midwestern and Southern states.

“Job growth is a major driver for apartment demand and the Midwest is humming with activity,” said Ella Neyland, president of Steadfast, in a prepared statement. She was not available for additional comment by press time. “We believe we are continuing our strategy of buying communities in markets that exhibit strong employment growth, limited new supply, and expanding populations.”

Two of the communities are located within the greater Indianapolis area. The REIT purchased Reveal on Cumberland in Fishers, just 16 miles northeast of downtown, for $29.5 million. The 220-unit development was built in 2014 on eight acres and features one-, two- and three-bedroom apartments and nine different floor plans. Apartments range from 663 to 1,433 square feet with average rents of $1,095. Reveal on Cumberland also includes amenities such as a full-service clubhouse, 24-hour fitness center, pet park, game room and a resort-style swimming pool with a hot tub and cabanas.

Steadfast also acquired the 277-unit Eagle Lake Landing Apartments in suburban Speedway, less than six miles from Indianapolis' CBD, for $19.2 million. Although this apartment community was built in 1976 it was completely renovated in 2011 with new roofs, windows, patio doors and common-area improvements.

Eagle Lake Landing has nine garden-style apartment buildings containing a mix of one-, two- and three-bedroom homes that average 1,075 square feet. On average, tenants pay $806 and occupy 95.3% of community. Shared common area improvements include a clubhouse, fitness center, business center, swimming pool and deck, tanning bed, playground, picnic area with grills and a lake with fishing.

“The greater Indianapolis area is an excellent market to be in and we are pleased to now own three apartment properties there,” said Neyland. “Reveal on Cumberland is located in the high-income community of Fishers, one of the most desired residential areas in the metro. As for Eagle Lake Landing, the city of Speedway, dubbed the “Racing Capital of the World”, is home to the Indy 500, the Brickyard 400 Nascar Race and the US Motorcycle Grand Prix, which should keep the tourism market thriving and the employment base strong.”

The REIT also just acquired Randall Highlands Apartments in North Aurora, IL, for $32.1 million. Located 30 miles west of Chicago, this 146-unit apartment community is its first asset in the state. Constructed between 2013 and 2014 on 38.2 acres, Randall Highlands offers two- and three-bedroom townhome-style apartments ranging from 1,372 to 1,688 square feet, with average rents of $1,764. Additional site improvements include a fitness center, zero-depth entry pool with sun deck, business center and a game room.

“We believe Randall Highlands is an excellent purchase for us,” said Neyland. “It's located just north of the I-88 corridor, which houses more than 125 major businesses, dozens of retail destinations and extensive outdoor recreation options. These are the type of economic drivers we look for when acquiring assets.”