Steadfast Income REIT acquires multifamily units in Des Moines
Steadfast Income REIT recently acquired 147 units in a multifamily complex in downtown Des Moines, Iowa. Park Place Apartments is a 16-story building in the central business district of downtown Des Moines, consisting of 158 units. Eleven of the units are privately owned, and not included in Steadfast's purchase. The building is 95% occupied. Chief Executive Officer and President of Steadfast Income REIT Rodney Emery said his company decided to invest in Des Moines specifically because of its favorable economic conditions. "Its low unemployment rate, favorable economic outlook, well-educated workforce and its dominant positioning as a headquarters city for many major corporations were key components in our decision to acquire Park Place," Emery said. He added that the acquisition terms coupled with the property's attributes position the endeavor to produce "immediate income." The property will be managed by Steadfast Management Co., one affiliate company under the umbrella of Steadfast Cos., a real estate investment management company based in Orange County, Calif. Steadfast Income REIT is sponsored by Steadfast REIT Investments, another affiliate of Steadfast Cos. The Steadfast Income said it "intends to qualify" as a real estate investment trust. Steadfast Income REIT used a portion of $1.65 billion raised in its July public offering for the purchase. It plans to use additional proceeds to invest strictly in multifamily and industrial properties. Public, nontraded real estate investment trusts offer securities pursuant to an offering registered with the Securities and Exchange Commission, but the securities do not publicly trade on a national stock exchange. Write to Christine Ricciardi.