February Nontraded REIT Capital Raise Increases
March 11, 2020 | James Sprow | Blue Vault
Blue Vault received February sales totals for 17 effective nontraded REIT program offerings as of March 11. Sales reported by those 17 NTRs totaled $507.9 million for February. Based upon a comparison of the 17 REITs that reported both February and January sales, the total capital raise for the 17 REITs was $507.9 million in February compared to $417.1 in January, an increase of 21.8%. This $90.8 million increase for the subsample of 17 NTRs in February was largely attributable to an $85.1 increase for Black Creek Industrial REIT IV and an $11.1 million increase for Nuveen Global Cities REIT. Black Creek Industrial REIT IV continued to benefit from the reinvestment of proceeds from the Industrial Property Trust sale to Prologis that closed January 8, 2020. Black Creek Industrial REIT IV had raised $205.7 million in January after only raising $30.0 million in December. Nuveen Global Cities REIT increased sales by 133% in February.
Among the other nontraded REIT offerings that had increases in capital raise between January and February, Procaccianti Hotel REIT increased capital raise from $2.5 million in January to $4.9 million in February, a 94% increase. Cottonwood Communities increased sales from $3.6 million in January to $4.9 million in February, a 39% jump. Moody National REIT II increased sales by 35%, from $3.7 million to $4.9 million. Five NTRs reported decreases in sales in February. FS Credit Real Estate Income Trust saw sales drop 39% from $41.7 million in January to $25.5 million in February. The 12 NTRs with increases are shown in Table I.
Other NTR programs raising funds in February 2020 that have yet to report their sales to Blue Vault as of March 11 include Blackstone Real Estate Income Trust, Oaktree REIT, and Starwood REIT. Based upon public filings and past reports from these REITs, the total for the nontraded REIT industry for February 2020 would likely exceed $1.8 billion, which would be the highest monthly total since 2013.
Nontraded BDC Sales
Two nontraded BDCs were raising funds in February 2020 and reported those sales to Blue Vault. Owl Rock Capital Corporation raised $55.4 million, down 15.4% from $65.5 million in January. The total capital raise for Owl Rock and MacKenzie Realty Capital in February was $58.4 million. MacKenzie reported nontraded BDC sales in February of $3.0 million, up from $1.1 million in January.
Nontraded Preferred Stock Issued by Listed REITs
At least three listed REITs issued nontraded preferred stock in February and reported those sales to Blue Vault. Bluerock Residential Growth REIT issued $18.6 million of its preferred stock in February, up from $10.3 million in January, an increase of 81.5%. Gladstone Land Corp. issued $29.5 million of preferred stock in February, up 186% from its January total of $10.3 million. CIM Commercial Trust issued $5.7 million of its nonlisted preferred in February, up substantially from its January total of $2.9 million.
