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First Quarter 2018 NTR Sales and April Sales Trends

June 5, 2018

First Quarter 2018 NTR Sales and April Sales Trends

June 5, 2018 | James Sprow | Blue Vault

Looking back at Q1 2018 shows that nontraded REIT capital raise increased over 8% compared to the Q4 2017 total.  Twenty-one nontraded REIT programs reported sales in Q1 2018 of $951.6 million after Q4 2017 sales by twenty-one nontraded REIT programs of $880.8 million.

April 2018 NTR capital raise continued the upward trend as 21 programs raised $380.1 million compared to the March total of $326.2, an increase of 16.5%. 

After Blackstone REIT’s Q1 2018 capital raise (including DRIP proceeds) of $632.8 million (of which almost all was raised via wirehouse BDs), the capital raise leaders in the NTR space were Griffin-American Healthcare REIT IV, Inc. with $56.4 million, Carter Validus Mission Critical REIT II, Inc. with $34.1 million and Cole Real Estate Income Strategy (Daily NAV), Inc. with $32.7 million.

The sponsor with the largest increase in capital raise from Q4 2017 to Q1 2018 was Black Creek Group, with capital raise increasing from a total of $31.8 million to $61.6 million. SmartStop Asset Management, LLC increased total nontraded REIT sales by 21% from $14.7 million to $17.7 million.

Although ranking second among all nontraded REIT sponsors in capital raise in both Q4 2017 and Q1 2018, Griffin Capital Company’s NTR capital raise decreased slightly from $65.5 million in Q4 2017 to $62.3 million in Q1 2018, a 5% drop.

A new entrant to the nontraded REIT space, Cantor Fitzgerald raised $11.5 million in Q1 2018 compared to $12.9 million in Q4 2017.

Several smaller REIT sponsors had significant increases in capital raise, albeit from small Q4 2017 totals. Moody National Companies increased capital raise from $4.4 million in Q4 2017 to $6.9 million in Q1 2018.  Hi-REIT (formerly Hartman Income REIT Management, Inc.) raised $3.8 million in Q1 2018 compared to $2.9 million in Q4 2017.

April 2018 capital raise by nontraded REITs was up 17% over March 2018, at $380.1 million compared to $326.2 million. Blackstone increased capital raise 11% in April compared to March. Cantor Fitzgerald increased capital raise from $3.7 million in March to $7.8 million in April. Griffin Capital increased capital raise 17% from $19.9 million to $23.3 million month-to-month. Black Creek Group increased capital raise by 21% from $21.3 million to $25.7 million. Jones Lang Lasalle had sales increase 166% from $5.9 million in March to $15.8 million in April.  Among smaller nontraded REIT sponsors, Moody increased capital raise in April by 72% over March and RREEF America increased capital raise 55% month-to-month.

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John E. Moriarty, ChFC
December 2015
February 3, 2016

I have been in the financial services industry for 20 years and our firm provides an education platform that gets clients to “think differently” about their financial picture.  For many years we have communicated to clients the need to diversify their portfolios using alternative asset classes and more specifically, private non-traded investments.  Due diligence on these types of financial vehicles is essential and when I learned about Blue Vault in 2010, our firm immediately began using their material as a tool to build confidence in the minds of our advisors on which alternatives to recommend to clients.  I am impressed with the way Blue Vault continues to add value to their subscribers and I view their publication as a tremendous resource in today’s complex world.