Nontraded REIT and BDC Sales Rebound Strongly in March
April 12, 2017 | by James Sprow | Blue Vault
Equity capital raised by open nontraded REIT programs in March 2017 appear to have risen 94% from February 2017, according to Blue Vault Partners. For the 26 effective nontraded REITs reporting sales in both February and March 2017, sales for all share classes, including DRIP proceeds, totaled an estimated $449 million in March 2017, compared to $231 million in February and $359 million in December 2016. A very significant new entrant, Blackstone Real Estate Income Trust, Inc., was not included in the February reported totals but has now reported March sales at $173 million, by far the largest capital raise in the sector by a sponsor. With the Blackstone sales, total capital raise for all NTRs in March were an estimated $622.5 million.
According to analysis, Blue Vault estimates that the top 10 sponsors in terms of nontraded REIT sales, including DRIP proceeds, in March 2017 were:
| Top Ten REIT Sponsors | NTR Sales in March 2017 |
| Blackstone | $173,456,192 |
| (intentionally left blank) | $125,400,000 |
| SmartStop Asset Management, LLC | $93,454,000 |
| Dividend Capital | $43,320,569 |
| Griffin Capital Corporation | $37,467,470 |
| Carter/Validus REIT Investment Management Company, LLC | $26,916,989 |
| Cole Capital | $25,500,000 |
| Hines Securities, Inc. | $22,984,694 |
| The Lightstone Group | $18,341,371 |
| KBS Capital Markets Group | $15,818,417 |
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BDCs showed a 50% increase in sales to $94.1 million in March from $62.5 million in February 2017. According to Blue Vault estimates, the top 8 BDC sponsors raising equity capital in March 2017 were:
| Top Eight BDC Sponsors | BDC Sales in March 2017 |
| FS Investments | $37,440,000 |
| (intentionally left blank) | $26,300,000 |
| CNL Financial Group | $12,885,910 |
| Hines Securities, Inc. | $6,625,417 |
| CION Investments | $4,157,936 |
| NexPoint Capital/Highland Capital Management | $3,846,202 |
| Sierra Medley/Management | $1,726,642 |
| Triton Pacific Capital | $1,081,000 |
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Blue Vault compiles sales each month for nontraded REITs, BDCs, Closed End Funds, including Interval Funds, and Private Placements, including 1031 sales. Reported sales are verified each quarter for any program that files financial reports with the SEC. The reported figures are estimates for March 2017.
Please note: None of the information provided above should be construed as any sort of solicitation or offer to buy or sell any security. No person should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. Blue Vault cannot guarantee the accuracy of the numbers listed above.
