Steadfast Spends Another $89M on Multifamily

ATLANTA—Steadfast Apartment REIT just snapped up two multifamily communities in the Southeast for $88.5 million. All told, Steadfast has now invested about $529 million in 15 multifamily complexes in eight states.

“We believe the apartment market is thriving as a result of job creation and strong demographics,” says Ella Shaw Neyland, president of Steadfast. “More employers and households are moving to secondary markets where local economies are growing, including in many locations where Steadfast already has a presence or would like to have a presence.”

Steadfast acquired Rosemont at East Cobb, a 15-acre property with 12 two- and three-story garden style residential buildings with a clubhouse and leasing office, for $16.5 million. The deal marks Steadfast's fourth investment in Georgia. Rosemont's occupancy stands at 96%. Neyland says Steadfast will upgrade the units as part of a revitalization strategy.

Rosemont at East Cobb is poised for long-term growth. The City of Marietta is located approximately 15 miles northwest of Downtown Atlanta which is home to two large-scale developments. The new Atlanta Braves Stadium and surrounding mixed-use, and LakePoint, a $1 billion sports complex, are projected to bring 20,000 jobs to the area.

Steadfast moved into Alabama with the acquisition of Ridge Crossings Apartments in Hoover, just 20 minutes south of Downtown Birmingham. Constructed in three phases from 1991 to 1996, the 720 apartment homes cost Steadfast $72 million. Ridge Crossings is currently 94% occupied with average in-place rents of $862.

“Ridge Crossings is one of the few apartment communities that serve the Mercedes-Benz North American headquarters' 2,800 employees,” says Neyland. “This headquarters is estimated to add 2,000 new jobs over the next 24 months. Additionally, Birmingham's Grandview Medical Center is slated to open in 18 months and will create 5,500 new jobs.  We believe Ridge Crossings is well positioned to house some of this pending demand.”