- Jun 05, 2015
Steadfast Apartment REIT has acquired Ridge Crossings Apartments, 720 apartment homes in Hoover, Ala., for $72 million, and in a separate deal, purchased Rosemont at East Cobb, 180 apartment homes in Marietta, Ga., for $16.5 million.
“Ridge Crossings in Birmingham represents a new market for Steadfast Apartment REIT, while Rosemont at East Cobb expands our presence in the greater Atlanta area,” Ella Shaw Neyland, Steadfast Apartment REIT’s president, told Commercial Property Executive. “Both these well-located communities offer a healthy mix of floor plans and competitive amenity packages that cater to residential demand.”
Ridge Crossings Apartments was originally constructed in three phases between 1991-1996 and consists of 71 two- and three-story garden style residential buildings with a mix of one-, two- and three-bedrooms.
A total of 334 units have recently been renovated with black appliances, faux granite counter-tops, new plumbing, updated light fixtures and resurfaced or painted cabinets.
The community is located 20 minutes south of downtown Birmingham and was 94 percent occupied at the time of the sale.
Rosemont at East Cobb features one- and two-bedroom apartments in five different floorplans that average 1,056 square feet with average in-place rents of $824. The approximately 15-acre property consists of 12 two- and three-story garden style residential buildings with a clubhouse/leasing office.
On-site amenities include a fitness center, business center, tennis court, volleyball court, sparkling swimming pool and a barbecue area.
The transaction represents the REIT’s fourth investment in the state of Georgia.
Steadfast Apartment REIT plans to initiate a revitalization strategy at both properties, which will encompass updates to appliances, light and plumbing fixtures, flooring, and countertops. Additional enhancements will be made to the common areas as well.
“These two transactions further our strategy of acquiring quality assets in thriving markets that exhibit strong population and job growth,” Neyland added. “We specifically seek properties that offer some kind of value add to residents through minor to moderate property upgrades.”
According to Neyland, the company has been tracking both the Birmingham and the Atlanta markets for the last several years and has seen them continue to strengthen. Markets like Hoover/Birmingham and Marietta—just outside of Atlanta— fit its target profile as a U.S. metropolitan market showing growing demographic and employment trends.
“The communities that Steadfast Apartment REIT has acquired are in the affluent submarkets with great school districts. Especially Atlanta, which was the last major metropolitan area to recover from the Great Recession,” she concluded. “Businesses are once again expanding and people are moving there to find jobs.”
Overall, Steadfast Apartment REIT has invested approximately $529 million in 15 apartment communities in eight states.