#USA #Irvine #Steadfast Companies #Estraya Boerne #Multifamily Investments

Steadfast Direct: A New Era in Multifamily Investments

In a significant move to enhance investment opportunities for accredited investors, Steadfast Companies recently introduced Steadfast Direct, a platform aimed at delivering institutional-quality multifamily real estate investments. With a robust track record exceeding $8 billion in transactions, Steadfast is set to navigate today's evolving real estate landscape strategically.

Market Context and Strategic Timing

The launch of Steadfast Direct comes at a pivotal moment in the multifamily real estate market. Following a hiatus from acquisitions between 2020 and 2023, Steadfast has resumed activities with a disciplined focus on identifying properties available at favorable prices influenced by the current market corrections. As stated by Rod Emery, CEO of Steadfast Companies, the company has been strategic in its timing, waiting for conditions to become financially viable before diving back into the market.

A Focused Investment Strategy

Unique to Steadfast's approach is its acquisition philosophy. Unlike many sponsors who often seek capital without having secured underlying assets, Steadfast prioritizes buying and stabilizing properties using its own balance sheet before engaging with investors. Every transaction emphasizes alignment of interests, featuring at least a 10-20% participation from the company itself. This ensures that investor interests are closely aligned with those of the sponsor, offering a layer of security and trust in the investment process.

Introducing Estraya Boerne

The inaugural offering from Steadfast Direct is Estraya Boerne, a Class A multifamily community featuring 288 units in Boerne, Texas, located just north of San Antonio. Estraya Boerne showcases several strong investment highlights:

• - Acquisition below market replacement cost: The property was purchased as part of a distressed sale, allowing Steadfast to capitalize on favorable pricing.
• - Increased occupancy: The community has seen stabilized occupancy rates soar from 78% at the time of acquisition to over 95% now, demonstrating effective property management and rehabilitation strategies.
• - Attractive financing terms: Long-term fixed-rate financing secured through Freddie Mac at an interest rate of 5.59% aids in long-term financial stability.
• - Tax benefits: The property benefits from a 75-year Public Facility Corporation ground lease, which provides a 100% property tax abatement, translating into significant annual savings.
• - Strong equity contribution: Steadfast and its principals contributed approximately 28% of total equity in the deal, further enhancing investor confidence.
• - Targeted financial returns: The anticipated returns on investment include a 6.5% priority cash yield alongside a 13.96% net internal rate of return (IRR) and an equity multiple of 1.80x over a five-year holding period.

Aligning Investor Interests

Bill Stoll, Chief Investment Officer of Steadfast Companies, emphasizes that the Estraya Boerne investment epitomizes the type of opportunity investors are actively seeking—stabilized and income-generating properties designed with built-in risk mitigation strategies. The firm's overarching goal is to both preserve investor capital and create durable cash flows, thus ensuring reliable returns across market cycles.

A Proven Legacy

Founded in 1994, Steadfast has successfully acquired, developed, or managed over 55,000 apartment units across 22 states and raised more than $1.7 billion in equity capital. The firm boasts a remarkable history of completing over 50 investment programs, demonstrating an established presence in the real estate sector and a commitment to nurturing long-term relationships with investors.

The Future of Investing with Steadfast Direct

Steadfast Direct sets itself apart as a direct-to-investor platform explicitly designed for accredited investors, opening the doors to institutional-quality multifamily real estate. With a firm commitment to fiduciary alignment and educational efforts aimed at building long-lasting investor relationships, Steadfast Direct stands to redefine how accredited investors interact with the multifamily investment landscape. For further information on Steadfast Direct, potential investors are encouraged to visit www.steadfast-direct.com.