Steadfast Apartment REIT III, or STAR III, has acquired its sixth apartment community. The latest property, Belmar Villas, is a 318-unit, garden-style apartment development located in the Denver suburb of Lakewood, Colo., and was purchased for $63.3 million.
STAR III is sponsored by Steadfast REIT Investments, an affiliate of Orange County, Calif.–based Steadfast Cos.
Belmar Villas includes 17 three-story buildings with one-, two-, and three-bedroom apartments that average 856 square feet. In-place rents average $1,318 per month, and the community is currently 93% occupied.
“We believe the Denver area is a great match for the investment objectives of Steadfast Apartment REIT III, which targets mid-tier multifamily properties in growing communities,” said Ella Neyland, president of Steadfast Apartment REIT III, in a statement. “Belmar Villas is our second property in the Denver metropolitan area, which was recently recognized by National Real Estate Investor as a top market for multifamily investment.”
Amenities at Belmar Villas include two swimming pools with spas, gas barbecue grills and fire pits, a playground, a designer clubhouse, a basketball court, a state-of-the-art fitness center, a business center and Internet café, covered parking, and a laundry center. Every apartment home in the community features walk-in closets, ceiling fans, central air-conditioning, and spacious private balconies or patios.
The previous owner recently renovated approximately a quarter of the apartment homes, according to STAR III. As part of the Steadfast Value Enhancement Strategy, STAR III plans to renovate the remaining unit interiors when turning apartments between residents, to include an upgraded appliance package, new laminate countertops, new plumbing fixtures, new vinyl wood flooring and carpeting, new paint, new ceiling fans, and upgraded lighting.
With the acquisition of Belmar Villas, STAR III has invested more than $242 million in six multifamily properties in Colorado, Georgia, Illinois, and Texas, totaling 1,530 apartment homes. In the Denver area, STAR III also owns Bristol Village in Aurora, Colo.
