Non-traded real estate investment trusts raised close to $1.1 billion in January 2021, posting their second month in a row above the $1 billion mark, according to investment bank Robert A. Stanger & Company.
“The recovery of non-listed REIT investment is well underway,” said Kevin T. Gannon, Stanger’s chairman and chief executive officer. “We expect fundraising will continue to strengthen and currently project 2021 non-listed REIT fundraising to reach $15 billion.”
Blackstone Group led January fundraising with $769 million, followed by Starwood Capital with $178 million. Black Creek Group raised $45 million in sales ($34 million in lifecycle and $11 million in net asset value REIT sales), followed by Hines Interest ($45 million) and FS Investments ($17 million).
The big news this month, according to Stanger, is in the non-traded business development space, where Blackstone’s first public non-traded BDC broke escrow. Blackstone Private Credit Fund, the first perpetual-life BDC in the space, closed out January with $1.4 billion in sales. The BDC’s $5 billion offering was declared effective by the SEC in October 2020.
Owl Rock Capital, which has dominated BDC sales over the past several years with $1.3 billion raised since inception in its traditional non-traded BDC, is in the process of launching a perpetual life BDC, Owl Rock Core Income Corporation.
Stanger said that “with the launch of these new perpetual-life products, this will be a sector to watch in 2021.”
Stanger’s survey of top sponsors of alternative investments revealed more than $3.7 billion raised in January via the retail pipeline. Alternative investments included in the survey are publicly registered non-traded REITs, non-traded BDCs, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zone funds, and other private placement offerings.
The top alternative investment sponsors identified by Stanger are Blackstone Group ($2.2 billion), Starwood Capital ($178 million), Bluerock Capital ($83 million), Black Creek Group ($67 million), Inland Real Estate ($66 million), CION Investment ($61 million), Griffin Capital ($52 million), GWG Holdings ($48 million), Hines Interest ($45 million), and Variant Investments ($37 million).
Founded in 1978, Robert A. Stanger & Co. Inc. is a national investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, REITs, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations and consolidations.