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Former Steadfast Executives Launch 3G Capital Advisors

January 31, 2019

Former Steadfast Executives Launch 3G Capital Advisors

January 30, 2019  | James Sprow | Blue Vault 

Commercial real estate investment and financial services industry veterans Christopher Hilbert and R. Kyle Winning, announced on January 25 the launch of  3G Capital Advisors, LLC, a boutique advisory firm focused on developing creative capital solutions.

"3G Capital Advisors leverages our years of successful institutional and retail fundraising experience by bringing debt, equity and operating partners together to deliver innovative investment products and strategies," said Hilbert, who serves as the firm's chief executive officer. "Our deep knowledge of the financial services and commercial real estate industries, coupled with our ability to develop creative investment vehicles, allows us to provide our clients with unique and beneficial capital solutions."

Related: How Has Steadfast Performed in the Nontraded REIT and Closed-End Fund Industries?

Co-founder Winning, who serves as 3G's president and chief strategist, focuses on economic, finance and real estate analytics to provide product-specific recommendations to the firm's partners. Winning has more than 30 years of experience in multifamily investment and management involving over 50,000 units across the United States, equally divided between affordable and market rate product. For 15 of his 30 years in the multifamily space, Winning was a principal and managing director of the multifamily division of Steadfast Companies, as well as the firm's chief investment officer.

"3G Capital Advisors will work with our strategic partners to deliver innovative investment opportunities for institutional investors as well as developing proprietary investment offerings for retail investors," explained Winning. "One of our principal goals is to bring long-term capital to successful small and midsize multifamily developers who have traditionally lacked ready access to institutional investors."

About Steadfast REIT Investments, LLC

Steadfast REIT Investments, LLC sponsors three nontraded REITs: Steadfast Income REIT, Inc., Steadfast Apartment REIT, Inc., and Steadfast Apartment REIT III, Inc.

As of today, all three offerings are closed, and the REITs are in Blue Vault’s Maturing LifeStage©. The first offering sponsored by Steadfast REIT Investments, LLC was Steadfast Income REIT. It was declared effective on July 19, 2010, and raised $745.4 million during its 41-month offering, closing on December 20, 2013. The next offering, Steadfast Apartment REIT, was declared effective on December 30, 2013, and raised capital for 27 months until March 24, 2016. Total capital raised during the offering, including DRP was $724.8 million. The most recent offering, Steadfast Apartment REIT III, was declared effective on February 5, 2016. During the 31-month offering period the REIT raised $205.2 million and closed on August 31, 2018.

All three REITs invest primarily in the multifamily sector. As of September 30, 2018, Steadfast Income REIT owned 39 multifamily properties comprising a total of 10,622 apartment homes, an additional 21,130 square feet of rentable commercial space at two properties and a 10% interest in one unconsolidated joint venture that owned 20 multifamily properties comprised of a total of 4,584 apartment homes. Steadfast Apartment REIT owned 34 multifamily properties comprising a total of 11,601 apartment homes at the end of the third quarter 2018. Steadfast Apartment REIT III owned ten multifamily properties comprising a total of 2,775 apartment homes at the same point in time.

Steadfast Apartment REIT III registered multiple class shares in its offering: Class A, Class T, and Class R. The two other REITs (Steadfast Income REIT and Steadfast Apartment REIT) sold one class of common stock. Initial offering prices for Steadfast Apartment REIT III Class A, Class T, and Class R were $25.00, $23.81, and $22.50 respectively. NAVs as of the third quarter 2018 were $22.54 for each class share. Steadfast Apartment REIT sold it’s shares at $15.00 in the primary offering and announced an estimate NAV of $15.18 as of December 31, 2017. Steadfast Income REIT offered shares at $10.00 during the offering and announced an estimated NAV of $9.84 as of May 9, 2018.

In the third quarter of 2018, Steadfast Income REIT paid 5.41% annualized distributions, based on the initial offering price. Steadfast Apartment REIT paid 6.00% in the third quarter, and Steadfast Apartment REIT III paid 6.00% to Class A shareholders, 5.17% to Class T shareholders, and 6.45% to Class R shareholders, net of class-specific fees.

 

  Initial Offering (Effective) Broke Escrow Offering Close Date
or Anticipated
Capital Raised
$ Mill
No. of Properties 2018 Distributions
Q3 2018
Steadfast Apartment REIT III, Inc. 2/5/2016 5/16/2016 8/31/2018 $205.2 10 6.00%Class A
6.45% Class R
5.17% Class T
Steadfast Apartment, Inc.  12/30/2013 2/27/2014 3/24/2016 $724.8 34 6.00%
Steadfast Income REIT, Inc.  7/19/2010 4/15/2010 12/20/2013 $745.4 39 and 1 JV  5.41%

 

Sources: 3G Capital Advisors, SEC, Blue Vault

Learn more about Steadfast Companies on the Blue Vault Investment Manager page

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