Fairstead Announces New $500 Million Equity Commitment To Help Expand The Nation's Housing Stock For Families Most In Need
"The lack of quality housing is one of the most important issues facing our nation today," said Fairstead CEO Jeff Goldberg.
NEW YORK, Oct. 20, 2021 /PRNewswire/ -- Fairstead, a national real estate developer focused on the creation and preservation of affordable housing, today announced a new equity commitment of $500 million to strategically grow the company's operations. This new capital will expand its multi-family housing portfolio and enhance the firm's prop tech, sustainability, and community impact programming for its affordable, workforce and market rate housing residents across the country. Since 2014, Fairstead has acquired or developed more than $4 billion of multi-family properties and is currently working on an identified pipeline of an additional $2.3 billion in new acquisitions across the country including: Florida, Kentucky, New Jersey, New York, Pennsylvania, and Washington, D.C.
The equity commitment from the firm's key investors comes just a little more than a month after the White House announced plans to increase the affordable housing supply in cities across the country, and as federal legislators continue to debate the need for investments in housing to combat the national affordability crisis.
"The lack of quality housing is one of the most important issues facing our nation today," said Fairstead CEO Jeff Goldberg. "Those of us at the forefront of this crisis recognize that expanding capacity is only part of the solution. We must commit the financial resources to create sustainable housing, invest in prop tech solutions to future proof our industry, and collaborate with our community and government leaders to develop impactful programming that will strengthen our neighborhoods and revitalize our cities."
Growing the Fairstead Pipeline:
In addition to the $500 million equity investment to grow Fairstead's nation-wide housing portfolio, the firm recently hired investment banking industry veteran Tricia Yarger to head up its Capital Markets team, after more than a decade as a director at Citi. Tricia will join Fairstead in November, where she will manage all of the firm's debt and equity relationships while helping outside capital partners direct their investments into Fairstead properties.
"Cities are at a critical juncture, with our leaders rethinking how we all live, work, commute, and access services. Ensuring there is adequate housing for the country's next generation is at the heart of this discussion because it is the foundation for rebuilding our communities," said Brett Meringoff, a Managing Partner for Development at Fairstead. "Fairstead will continue to make strategic investments in all asset classes of real estate because we believe that everyone, regardless of income level, deserves to have access to high-quality housing that will help our neighborhoods grow and thrive for years to come."
Investing in PropTech:
Fairstead has strategic partnerships in PropTech and its portfolio often serves as an incubator for innovative technology that will set a new standard for the affordable housing industry. The firm's venture capital arm looks for synergistic partnerships, and strategic tech investments that will help cities become more sustainable and resilient.
"Fairstead strategically invests in technology that will enhance the long-term viability of our developments and create more stable and resilient homes for our residents," said Michael Gilbert, Fairstead's Director of Energy & Sustainability. "Fairstead is fortunate to have the on-hand capital needed to empower its team members to invest in the energy, water, and prop tech solutions that will propel this industry forward for years to come."
Earlier this month, Fairstead made an investment in Enviro Power, an energy tech company focused on transforming existing heating infrastructure into an energy platform with its SmartWatt Boiler technology, a boiler that generates onsite electricity at nearly zero-cost and provides backup power. In addition to funding this technology and sitting on Enviro Power's board of directors, Fairstead is evaluating the deployment of the systems at select properties throughout its portfolio.
"Fairstead is an ideal partner. Their team has the foresight to invest in environmentally-friendly and energy efficient new technologies, and the ability to scale them with a national portfolio," said Dan Nadav, CEO of Enviro Power. "We look forward to working closely with Fairstead to bring our smart cogeneration boilers to communities that need a green and economical solution, and to have their guidance as board members as we grow our company."
Impacting Communities:
To ensure all its developments can successfully meet residents' broader needs, Fairstead has in-house teams dedicated to creating positive social, economic, and environmental change. Its Community Impact program works to improve health outcomes, and provide financial literacy, job training, internet access, and opportunities for successful civic engagement. The firm's in-house energy and sustainability team focuses its efforts on improving the way buildings operate, which is crucial to meeting the immediate needs of residents and communities, as well as the long-term needs of cities, the nation, and the planet.
"The need for quality affordable housing in many of our cities continues to increase, particularly for our most vulnerable neighbors," said Bobby Byrd, a Managing Partner for Development at Fairstead. "At Fairstead, our discussions are centering around high opportunity living experiences that extend beyond a resident's home. We are developing programming and seeking more partners to invest in our residents in ways that help move their families and communities forward because we believe that affordable housing can, and should, be a platform to enhance lives and strengthen neighborhoods."
About Fairstead:
Fairstead is a purpose-driven vertically integrated real estate developer specializing in creating sustainable, high-quality housing. Since 2014, Fairstead has acquired or developed more than $4 billion in property. With offices in New York, Maryland, and South Carolina, Fairstead's team manages 90+ communities across the country and run its comprehensive real estate platform, which includes acquisitions and development, venture capital investments in prop tech, design and construction, energy and sustainability, property management, marketing, and leasing. The firm also administers one of the industry's most proactive community impact programs to provide on-site support services to residents. For more information, visit www.fairstead.com.
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