Steadfast Apartment REIT has merged with Steadfast Income REIT and Steadfast Apartment REIT III, creating a combined company with approximately $3.3 billion in gross real estate assets.
The transactions are expected to close in the first quarter of 2020.
The combined company expects to maintain its exclusive multifamily focus with an emphasis on moderate income apartments, a property type that has demonstrated strong performance with low levels of volatility. If the mergers were to occur today, the combined company’s portfolio would consist of 71 properties in 14 states with an average effective rent of $1,158. Based on occupancy as of June 30, 2019, the combined company’s portfolio is expected to have an occupancy rate of 94 percent, an average age of 20 years and gross real estate assets of $3.3 billion.
The combined company will have enhanced market prominence in high-growth areas, and growth potential in a recession-resilient sector supported by demographic trends. The combined company will have a presence in seven of the top 20 real estate investment markets, including Dallas, Nashville and Austin, and will rank among the top 50 apartment owners in the country.
