LODAS Markets, an operator of a web-based marketplace for the secondary trading of illiquid real estate and alternative investments formerly known as Realto Inc., announced that Blackstone Real Estate Income Trust is now trading on the LODAS marketplace.
As The DI Wire previously reported in February 2023, Starwood Real Estate Income Trust also began trading on the LODAS marketplace.
Both Starwood and Blackstone have limited investor withdrawals in the past few months as redemption requests exceeded quarterly limits on their repurchase programs. LODAS claims this left many investors in the $15 billion Starwood REIT scrambling for a way to convert their assets into cash.
“The first trade of Class D BREIT shares was executed in the LODAS marketplace at $14.42, which is equal to January’s NAV and just below February’s NAV of $14.47,” Brian King, LODAS Markets chief executive officer, said. “This is big news for investors as BREIT capped redemptions for the fourth straight month in February, redeeming just $1.4 billion despite receiving $3.9 billion in total requests.”
“In both BREIT and Starwood REIT, we’re attracting institutional buyers that have designated millions of dollars to these funds. It’s a significant opportunity for liquidity for investors who don’t want to wait another month to test their luck in redemption queues,” King added.
Currently, the company reports that its marketplace has millions of dollars of institutional buy-side interest in SREIT, with some willing to buy at the current NAV.
“By introducing clients to the LODAS marketplace, I’ve given them a way to easily liquidate securities that they otherwise may have been unable to convert to cash,” Brad Webb, an advisor with Second Level Capital in St. Louis, said. “My clients can open an account, place their shares for sale and execute their order all within minutes of me telling them about LODAS.”
Launched as Realto in 2021, LODAS operates an automated online marketplace that matches buyers and sellers of alternative and real estate investments. It operates like an exchange where assets such as non-traded real estate investment trusts, business development corporations and private real estate investments are traded similar to corporate stocks.
Currently, the LODAS marketplace has nearly $1 billion in total buy-side interest and more than 30 funds being traded.
Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised approximately $60 billion in three public offerings as of June 2022. The current offering has raised $6.6 billion, and as of Feb. 28, 2023, its aggregate NAV was $70.5 billion.