Steadfast Apartment/ Income REIT Lawsuit Investigation

In August of 2019, three Steadfast funds (STAR, STAR III, and SIR) announced proposed mergers. On December 19, 2019, the REITs filed their respective definitive proxies with the SEC, seeking shareholder approval for the mergers. If approved, Steadfast Apartment REIT is expected to acquire Steadfast Apartment REIT III and Steadfast Income REIT by the first quarter of 2020. The newly combined Steadfast Apartment REIT would then own 70 properties and approximately $3.2 billion in total assets.

Under the terms of the mergers, Steadfast Income REIT shareholders are expected to receive 0.5934 shares of Steadfast Apartment common stock. This means that shareholders who bought their Steadfast Income shares at $10 per share, will now only have an amount equivalent to $9.40 per share. Additionally, Steadfast Apartment REIT III shareholders are expected to receive 1.43 STAR shares, or $22.65 per Steadfast Apartment REIT III share. Steadfast Apartment III shares were originally sold for $25 per share.

Many investors have also reported feeling stuck in their Steadfast investments, and the mergers are not expected to constitute a liquidity event for STAR III and SIR shareholders.

Steadfast Capital Market Group offerings include:

• Steadfast Apartment REIT III
• Steadfast Apartment REIT
• Steadfast Income REIT
• Stira Alcentra Global Credit Fund

If you invested in any Steadfast REITs, you may have a claim. Contact us today to learn how you may recover your investment losses.

We have heard reports that many Steadfast REIT investors were also placed in other risky investments by their stockbroker or financial advisor. These risky private placements include non-traded real estate investment trusts (REITs) and business development corps (BDCs).

A few of the risky investments seen with Steadfast investors include:

• Northstar Healthcare Income
• GPB Capital
• Business Development Corporation of America
• FS Energy and Power
• Cole Credit Property Trust III (“CCPT III”)
• Phillips Edison & Co.
• Healthcare Trust, Inc

Many investors in the funds listed above are reportedly stuck in their non-traded REITs.

While REITs are often marketed as low-risk, high yield investments, FINRA and the SEC have recently increased scrutiny into the marketing of these investments. Non-traded REITs are not traded on the public securities exchange, meaning that these REITs can often be illiquid. Many investors have reported being unable to redeem their shares from non-traded REITs and remain stuck in these uncertain investments as a result.

Many firms have notoriously sold REITs to investors. If you invested in any Steadfast REITs and have lost part of your investment, not received your distributions, or remain stuck in the uncertain REIT, you may be eligible for monetary recovery. Contact our firm to learn more about your REIT fraud options.

Gibbs Law Group is currently investigating a number of REITs on behalf of shareholders. These REITs include:

• Northstar Healthcare Income REIT
• Hospitality Investors Trust
• Benefit Street Partners Realty Trust
• FS Credit Real Estate Income Trust–I
• Cole Credit Property Trust III (“CCPT III”)
• The Parking REIT
• New York City REIT

If you invested in any of these REITs, or others, we may be able to help. Speak with a lawyer today to learn more about our REIT lawsuits.

Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.

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