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Wednesday, 07 August 2019

Steadfast Aims to Merge 3 Non-Traded REITs, Creating Large Apartment Owner

Steadfast Cos., an Irvine, Calif., investment manager that sponsors three non-traded REITs that invest in apartment properties, has struck a deal to merge the three companies. The resulting company would own 71 apartment properties with roughly 22,350 units valued at $3.3 billion in 14 markets, including Dallas, Atlanta and Denver.

Commercial Real Estate Direct Staff Report

Steadfast Cos., an Irvine, Calif., investment manager that sponsors three non-traded REITs that invest in apartment properties, has struck a deal to merge them.

The resulting company would own some $3.3 billion of apartment properties, giving it greater flexibility in raising capital and options when it comes to eventually providing shareholders with liquidity. Steadfast's aim is to continue to make investments, both in acquisitions and in the three companies' existing portfolios.

The three companies are:

- Steadfast Income REIT Inc., which was launched roughly nine years ago and had raised nearly $770 million by selling its shares for $10 each. It owned 32 apartment properties with 8,412 units, as of the end of March. It purchased the properties for a total of $933.6 million. Its portfolio also includes 21,130 square feet of commercial space at two properties.

Last year, the company's portfolio was 94.3 percent occupied and generated average monthly rents of $1,068/unit. It was encumbered by $693.5 million of debt and generated $74.3 million of net operating income on $142 million of revenue. But that's before it sold a number of properties.

- Steadfast Apartment REIT Inc., which was launched in 2013 and had raised $794 million of equity. As of the end of March, it owned 34 apartment properties with 11,601 units for a total of $1.5 billion. Last year, its portfolio, which is encumbered by $502.1 million of debt, was 93.9 percent occupied and generated average monthly rents of $1,163/unit. It generated $93.2 million of NOI on $163.4 million of total revenue.

- Steadfast Apartment REIT III Inc., which was launched three years ago and has raised $205.2 million of equity by...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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