Nontraded REIT fundraising on the rise, with Blackstone leading the way
August 14, 2020 | Tom Yeatts | S&P Global Market Intelligence
Sales of nontraded real estate investment trusts are creeping back up off the spring 2020 lows induced by the coronavirus pandemic, and a leading investment bank in the space thinks the products’ relative price stability through the crisis will coax some real estate investors over from the public market.
July sales of nontraded REITs totaled $430 million, down slightly from $454 million in June but up 74% from $247 million in May, the monthly low this year, according to data from the investment banking firm Robert A. Stanger & Co. Inc. Sales were racing at an average monthly clip of $2.4 billion in January and February before the economic shutdown in March.
So far this year, nontraded REIT sponsors have raised $7.1 billion, and Stanger expects sales to total $10 billion to $12 billion for 2020. In 2019, sales totaled approximately $11.84 billion.
