Our Capital Allocation Strategy: How We Filter Through Roughly 200 Deals a Month

“We are turning a lot of stones right now.” That is how Bill Stoll, our Chief Investment Officer, describes the current investment environment.

In an active month, roughly 200 multifamily opportunities reach our team. Some originate from long-standing broker relationships. Others come through lenders or from assets we have tracked while waiting for pricing to adjust. During peak listing periods earlier this year, dozens of transactions crossed Bill’s desk in a single day. Most do not progress beyond initial screening.

Approximately 25 opportunities per month move into formal underwriting. At that stage, the focus shifts to present income and structure. We evaluate whether current rent rolls and expense realities support the entry basis without relying on near-term recovery. In a market where loan maturities and revised pricing are beginning to reshape transactions, structure matters as much as price.

From that underwritten group, only a limited number justify touring, and fewer advance to a formal offer.

In 2025, approximately 2,400 multifamily opportunities were introduced to our team. We completed three acquisitions totaling $86.9 million, alongside $27.8 million in dispositions and $15 million refinanced, representing roughly $100 million in total capital activity. In practical terms, one acquisition resulted from roughly every 800 introductions.

That selectivity is intentional and reflects structure rather than circumstance. Our broader operating platform generates capital activity across acquisitions, dispositions, refinancing, and development. Because capital deployment does not depend solely on new purchases, we evaluate widely and commit only when pricing, structure, and operating fundamentals align. Meaning, we say no more easily than we say yes to a deal.

The One Risk We Are Managing Today

When asked what concerns him most in this cycle, Bill emphasized entry basis and avoiding overpaying. As he put it, “You don’t want to catch a falling knife.”

A property trading below its 2021 valuation can still face pressure in occupancy or effective rents. Purchase price must align with current operating performance, not prior peak pricing. Our underwriting reflects today’s rent roll and present market conditions rather than historical valuations.

Bill also summarized our current stance: “We’re looking at more deals and signing fewer.” Review activity has increased, while our commitment to invest remains measured.

Our current approach is grounded in operating visibility. Steadfast oversees more than 55,000 units across its broader portfolio through in-house property and asset management. Rent collections, lease velocity, concessions, and expense pressures are monitored continuously, and those operating realities that we can see very up close and intimately also inform our underwriting assumptions for new potential opportunities.

What Becomes a Steadfast Direct Deal

While all opportunities are being reviewed under the same lens, not every acquisition is allocated to Steadfast Direct.

Our capital is matched intentionally. Some transactions are tied to internal capital recycling, strategic portfolio positioning, or structures that require institutional counterparties. Others are structured for participation by individual investors through our Direct platform.

In practice, an offering becomes live on Steadfast Direct when:

• The equity requirement aligns with individual investor participation rather than institutional capital.
• The capital structure is straightforward and does not rely on layered preferred equity or complex joint ventures.
• The risk profile and business plan are clear and measurable.
• The projected hold period and return profile are suited to long-term private capital.

Before an opportunity appears on Steadfast Direct, it has already passed through the same underwriting standards applied across the broader enterprise. Allocation is determined by capital structure and investor fit. Steadfast and its principals invest alongside investors, and compensation is structured around performance, reinforcing alignment across the capital stack.

What We Are Watching

Listing activity has increased following the seasonal slowdown. Bill has toured assets in markets such as Knoxville and San Antonio and continues to revisit properties returning to market at adjusted pricing. Several transactions previously evaluated are resurfacing as sellers recalibrate expectations and capital structures adjust.

Loan maturities from 2021–2022 acquisitions are beginning to influence behavior. In parts of our core markets, occupancy and effective rents continue to soften, and updated rent rolls often reveal more pressure than earlier marketing packages suggested. As refinancing windows narrow and higher-rate debt resets, additional repricing is likely.

The central question remains constant: does today’s basis reflect today’s operating reality and provide sufficient margin for further volatility? When pricing compensates for current conditions and forward visibility, we will make the move.

To learn more about what we are seeing in today’s market, read our recent outlook, “ Steadfast's Predictions for 2026 for Apartment Investors.”

Disclaimer: The information provided in this article is for informational and educational purposes only. It is not intended to serve as investment, tax, or legal advice, nor should it be interpreted as an offer to buy or sell any security. Private real estate investments carry significant risks, including the potential loss of principal, and are intended for accredited investors who understand and can bear those risks. Any discussion of tax treatment relates solely to the property-level structure and does not reflect or predict individual investor outcomes. Tax implications vary based on each investor’s circumstances, and readers should consult their own financial, legal, and tax advisors before making any investment decision.