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NTR Sales at $326.2 Million in March, Down 8% From February

April 11, 2018

NTR Sales at $326.2 Million in March, Down 8% From February

April 9, 2018 | James Sprow | Blue Vault

Sales by nontraded REITs reported to Blue Vault for March totaled $326.25 million, down 8% from the February total of $354.5 million. Blackstone REIT reported sales of $220.4 million in March, comprising over 66% of all nontraded REIT sales for the month, decreasing from its 70% share in February. Blackstone’s month-to-month decrease of $29.0 million is responsible for all of the total NTR sales decrease of $28.3 million. NTR sales were approximately $622.5 million in March 2017, for a year-over-year decrease of 48%. There were 23 sponsors raising capital for nontraded REIT programs in March 2018 compared to 20 sponsors raising capital for nontraded REIT programs during 2017, and 22 sponsors with offerings during 2016. While Inland exited the field in February with the close of the offering for Inland Residential Properties Trust, at least three new sponsors were actively raising funds in March.

New nontraded REIT offerings that have yet to report significant sales or have yet to break escrow include FS Credit Real Estate Income Trust (sponsored by Franklin Square Holdings and declared effective in December), Rodin Income Trust (sponsored by Cantor Fitzgerald and not yet effective), Starwood Real Estate Income Trust (sponsored by Starwood Capital Group and declared effective in December), Nuveen Global Cities REIT (sponsored by Nuveen LLC and declared effective January 31, 2018), Oakwood Real Estate Income Trust (not yet effective), and Phillips Edison Grocery Center REIT III (not yet effective).

Blackstone REIT’s reported sales in Q1 2018 were $632.8 million, for 66.5% of NTR industry sales for the quarter. This is up from Blackstone REIT’s market share for 2017 when $1.872 billion represented 44% of all NTR sales for the year. Blackstone’s share of total nontraded REIT sales was 55% for Q4 2017.

Other leading sponsors with sales in the nontraded REIT sector in March, following Blackstone’s $220.4 million, were:

• Black Creek Group$21.3 million
• Griffin Capital Company$19.9 million
• CIM Group (formerly Cole Capital)$16.6 million
• Carter Validus$12.1 million
• SmartStop Asset Management$5.9 million
• Jones Lang LaSalle$5.9 million
• Steadfast Companies$5.0 million
• Resource$3.9 million
Cantor Fitzgerald$3.7 million

 

Nontraded BDC sales reported in March were just $29.8 million, down 18% from February’s $36.3 million and down 68% from March 2017’s $94.0 million. The leading sponsor of nontraded BDCs reporting sales in March was Owl Rock Capital Advisors with sales of $21.5 million, followed by CION Investments at $4.1 million and Terra Capital Partners at $1.7 million.

Just six nontraded BDC sponsors were raising capital in March 2018, down from seven in February. FS Investments closed two nontraded BDC offerings in November 2017.

Leading sponsors in the BDC sector for Q1 2018 sales were Owl Rock Capital Advisors at $60.7 million (64.6% market share) and CION Investments with $11.7 million. Other BDC sponsors with sales in Q1 2018 include Terra Capital Partners at $8.5 million, NexPoint Capital/Highland Capital Management at $6.5 million, MacKenzie Capital Management at $2.7 million, and Sierra/Medley Management at $1.5 million.

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