Cetera Financial Group, a network of independent broker-dealer firms, has halted sales of certain real estate based alternative investment products, including net asset value real estate investment trusts and interval funds, due to the uncertainty surrounding real estate valuations during the coronavirus pandemic, a Cetera spokesperson told InvestmentNews.
“Due to the impact of COVID-19 on the U.S. economy, Cetera has temporarily suspended sales in certain non-traded real estate-based investments, such as NAV REITs and interval funds,” the spokesperson told the publication in an email. “We will continue to monitor and evaluate offering these products.”
LPL Financial and Advisor Group also previously halted sales of certain non-traded alternative investments that focus on commercial real estate.
The broker-dealers are purportedly halting sales due to the inherent inaccuracy of real estate valuations conducted prior to the onset of the COVID-19 pandemic and the resulting nationwide economic shutdown.
Cetera Financial Group is comprised of Cetera Advisors, Cetera Advisor Networks, Cetera Advisors, First Allied Securities, Summit Brokerage Services, and has approximately 8,000 affiliated representatives and financial advisors.