- Steadfast Direct is a new investment platform from Steadfast Companies, offering accredited investors direct participation in multifamily properties typically reserved for institutions.
- Each investment includes 10–20% sponsor co-investment, aligning interests between Steadfast and investors, with targeted net IRRs around 14%.
- Steadfast reenters the acquisition market after a strategic pause, taking advantage of today’s repriced assets and distressed sales environment.
A Direct Path to Multifamily Investing
Steadfast Companies, a seasoned multifamily real estate firm with over $8 billion in transaction history, has launched Steadfast Direct, a platform designed to give accredited investors direct access to institutional-quality apartment investments.
Following a three-year pause in acquisitions, the company is reentering the market with a focus on value-driven opportunities amid the current reset in multifamily valuations. “We waited when valuations no longer made sense,” said Rod Emery, CEO of Steadfast Companies. “Today, the landscape is entirely different—distressed sellers, repriced assets, and a window of opportunity to buy well and build lasting value.”
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First Offering: Estraya Boerne
The debut investment, Estraya Boerne, exemplifies Steadfast’s approach. The 288-unit Class A property, located north of San Antonio, was acquired below replacement cost through a distressed sale. Since acquisition, occupancy has risen from 78% to more than 95%, supported by long-term Freddie Mac financing at 5.59%.
A 75-year Public Facility Corporation (PFC) ground lease provides 100% property tax abatement, yielding approximately $1 million in annual savings. Steadfast and its principals contributed about 28% of total equity, underscoring strong sponsor alignment.
The investment targets a 6.5% preferred cash yield, 13.96% net IRR, and 1.8x equity multiple over a five-year hold.
A Proven Operator with Deep Experience
Since its founding in 1994, Steadfast has acquired, developed, or managed more than 55,000 apartment units across 22 states and raised over $1.7 billion in equity capital. The firm has completed over 50 private and public investment programs, including multiple full-cycle non-traded REITs.
Steadfast Direct emphasizes fiduciary alignment, sponsor co-investment, and investor education, providing a transparent entry point for those seeking direct multifamily exposure.
Why It Matters
As institutional investors and sponsors seek creative ways to access today’s repriced multifamily market, Steadfast’s direct-to-investor model could signal a growing shift toward greater transparency and shared risk in private real estate investing.
