After its Apartment REIT more than doubled total revenues year over year, Steadfast is definitely one to watch. Bill Stoll, EVP real estate at Steadfast Companies, spoke about where the company is focused and the strategy behind it.
Stoll says that Steadfast has a renewed interest in the Midwest and is targeting Denver, Dallas, Nashville and Atlanta, with more than 80% of their product in those cities. They also are tiptoeing back into the South and have a presence again in Austin.
Throughout all these properties, they have been able to execute a three percent rent increase. However, Stoll anticipates that rent growth will start slowing down soon.
He also says that Steadfast is remaining conservative on underwriting and really studying the market. The company uses outside data companies to understand the markets before any acquisition and the acquisition team also goes to visit properties. Stoll adds that to be successful at value add, Steadfast has to be diligent and strategic.
Stoll says that the company’s renewed competitiveness in marketing has helped them achieve a 94% occupancy rate. He also attributes their success to great people making great decisions that help execute on the business plan. Steadfast focuses on online advertising, while paying attention to catering it to each individual submarket, because as Stoll points out, all sub-markets require different strategies.
The company’s big tag line right now is “Generation All,” because it has found the need to focus on baby boomers is just as strong as the focus on Millennials. Steadfast has recently started focusing on some senior housing.
One of the keys to attract both types of renters is walkability. Walkability is important to any potential resident. Stoll says this key feature allows Steadfast to push premiums in rents and also allows residents to foster a better community with other residents. Stoll chalks that up as a win-win, because residents stay longer, enjoy their housing more and Steadfast has a lower turnover.