Page 6 —
COLORADO REAL ESTATE JOURNAL
— April 20-May 3, 2016
by John Rebchook
Steadfast Apartment REIT,
based in Irvine, California, recent-
ly paid $32.4 million for the 217-
unit Fielder’s CreekApartments.
Steadfast, a public, nontraded
real estate investment trust, paid
more than double what the seller,
Foothills Investors LLC, paid for
the property in June 2011, accord-
ing to public records.
Steadfast paid $149,308.75 per
unit, while Foothills had paid
$15.65 million, or $72,170 per unit,
according to public records.
Fielder’sCreek, at 3205W. Floyd
Ave., is in Denver.
“We are fortunate to have excel-
lent broker relationships and a
team of people who are scouting
opportunities that fit our invest-
ment profile of acquiring well-
positioned, institutional-quality
apartment communities that have
demonstrated high occupancy
and income levels across market
cycles and where we can pursue
strategic property-level improve-
ments that may enhance revenue
and resale value,” a Steadfast
spokeswoman said.
Current monthly rents are in the
$845 to $1,145 range. The commu-
nity was built in 1983 on a 7.1-acre
site.
One of its selling points is that
it is near the College Viewmiddle
school and high school, which are
part of the Denver School of Sci-
ence and Technology school sys-
tem – a series of charter schools
that are operated as part of the
Denver Public Schools system.
College View was ranked the No.
2 middle school in Colorado for
growth and the top school in Den-
ver in 2013.
Steadfast’s was one of eight
offers for the property, according
to ShaneOzment, amember of the
ARA Newmark team that listed
the property for the California-
based seller.
The ARA Newmark team also
included Terrance Hunt, Jeff
Hawks, Doug Andrews, Anna
Stevens andAmanda Meldrum.
“We took four of those as part of
the best and final offers,” Ozment
said.
A year ago, they might have
received 15 to 20 offers, he said.
“Depending on the location and
the asset, we seem to be seeing
not quite so many offers, but that
isn’t affecting the final sales price,”
Ozment said.
“We are still getting very good
prices and Steadfast made a very
strong offer for Fielder’s Creek,”
he said.
One thing that limited the num-
ber of offers for this property is
that is it not a 100 percent value-
add deal, he said.
The seller had renovated 60 per-
cent of the units, he noted.
Steadfast, he estimated, prob-
ably will spend $5,000 to $7,000
per unit on the remaining units.
“Since it wasn’t a full value-add
deal, that eliminated a lot of buy-
ers,” Ozment said.
“If you look at the buckets of
money that are out there, there are
some groups that either want 100
percent value-add deals or Class
A, core-fund purchases,” which
are either brand-new and are not
in need of any improvements or at
least 75 percent renovated.
Buyers typically are more con-
cerned about the internal rate of
return rather than the cap rate, he
said.
“Everyone wants these value-
add deals, because of the IRR,”
he said.
We are the guys you
cheated off of in math.
303.623.6300
There was a reason for that. And still is.
We are the best at what we do.
DENVER
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DALLAS/ FORT WORTH
ENGINEERS
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LAND SURVEYORS
Multifamily
A look at Fielder’s Creek, which recently sold to Steadfast Apartment
REIT
