Morrison & Foerster is representing client Steadfast Apartment REIT, Inc. (STAR) in its acquisition of Steadfast Income REIT, Inc. (SIR) and Steadfast Apartment REIT III, Inc. (STAR III). All three Steadfast REITS are public, non-traded corporations that have entered into definitive merger agreements, in which STAR will acquire SIR and STAR III in separate stock-for-stock, tax-free transactions, creating a combined company with approximately $3.3 billion in gross real estate assets. The transactions, which were announced on August 6, 2019, are expected to close in the first quarter of 2020.
All three Steadfast REITs invest in quality mid-tier apartment communities across the United States and are sponsored by Steadfast REIT Investments LLC, an affiliate of Steadfast Companies, an Orange County, Calif.-based group of affiliated real estate investment and operating companies that acquire, develop and manage real estate in the U.S. and Mexico. Through the merger, the combined company’s portfolio will consist of 71 properties in 14 states and is poised for growth. The merger is also expected to enhance market prominence and increase portfolio diversification, while generating significant savings, increasing cash flow, and expanding access to capital.
The MoFo deal team is led by corporate and REIT partner Heath Linsky, corporate and REIT associate Mary Katherine Rawls and corporate associate Don Lee, with additional support from partner Andy Campbell and associates Jenny Wang, Andrew Ko and Fred Muna. Tax guidance is led by partner Jay Blaivas with associate Philip Jaworskyj.
Read the companies’ press release.