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Steadfast Merging Three REITs, Creates $3.3B Entity Focused on MFs
Irvine, CA-based Steadfast Apartment REIT, Inc. is acquiring Steadfast Income REIT, Inc. (SIR) and Steadfast Apartment REIT III, Inc. (STAR III) in separate stock-for-stock, tax-free transactions, creating a combined company with roughly $3.3 billion in gross real estate assets.
Steadfast’s Rodney F. Emery says, “We believe the strategic merger of these three highly complementary portfolios with similar investment strategies will create an enhanced and diversified portfolio, concentrated in high growth markets.”
The transactions are expected to close Q1 2020. If the mergers were to occur today, the portfolio would consist of 71 properties in 14 states, including a presence in seven of the top 20 real estate investment markets, such as Dallas, Nashville and Austin, and would rank Steadfast among the top 50 U.S. apartment owners.
Special committees of independent directors, as well as independent financial and legal advisors, recommended approval of the merger agreements, which were unanimously approved by their respective Boards of Directors.
Connect Orange County is coming up on August 22nd at The Resort at Pelican Hill in Newport Coast. More information about the event and registration information can be found here.
*Pictured Steadfast Income REIT’s Forty57 property in Lexington, KY
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