Sales of non-traded real estate investment trusts continued to tick upwards during the month of October with $656 million raised, an 8.3 percent increase compared to $606 million total in September, according to investment bank Robert A. Stanger & Company.
Year-to-date through October 2020, non-traded REIT sales totaled $8.82 billion, up slightly from the same period of 2019 when sales topped $8.77 billion.
“The recovery of non-listed REIT fundraising has been consistent with our 2020 projection of $10 billion,” said Kevin T. Gannon, chairman and chief executive officer of Stanger. “We anticipate a strong finish to 2020 for the alternative investment space.”
After record fundraising months in January ($2.4 billion) and February ($2.5 billion), fundraising declined to $763 million in March during the onset of the COVID-19 pandemic and continued a downward trajectory through April ($319 million) and May ($247 million) before rebounding slightly in June ($454 million). Following a plateau in July and August, fundraising continued to trend upward in September ($606 million) and October ($656 million).
Blackstone Group leads 2020 fundraising with nearly $6.33 billion, followed by Black Creek Group with $946 million in sales ($867 million in lifecycle and $79 million in net asset value REIT sales), aided by the recycling of distributions from its liquidation of Industrial Property Trust. Starwood Capital Group raised $726 million, followed by LaSalle Investment Management ($228 million) and Hines Interest ($188 million).
Stanger’s survey of top sponsors of alternative investments revealed $20.3 billion raised year-to-date through October via the retail pipeline. Alternative investments included in the survey are publicly registered non- traded REITs, non-traded business development companies, interval funds, non-traded preferred stock of traded REITs, as well as Delaware statutory trusts, opportunity zone funds, and other private placement offerings.
The top alternative investment sponsors in terms of capital formation are: Blackstone Group ($6.37 billion), Black Creek Group ($1.16 billion), Owl Rock Capital ($1.13 billion), Griffin Capital ($876 million), Bluerock Capital ($797 million), Starwood Capital ($726 million), Inland Real Estate ($558 million), GWG Holdings ($419 million), Exchange Right ($385 million), and CION Investment ($382 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.