Sales of non-traded real estate investment trusts reached $3.3 billion in July, according to Robert A. Stanger and Co., marking the second consecutive month above the $3 billion mark.
July fundraising was once again led by Blackstone Real Estate Income Trust with $2.33 billion. Starwood Capital reported $544 million in monthly sales, while Ares, formerly Black Creek Group, reported $155 million.
Randy Sweetman, executive managing director of Stanger, said that “while Blackstone maintains a stronghold on the market share of non-traded REIT fundraising, posting its third consecutive month of $2 billion plus capital formation, Starwood, Ares, Nuveen, and FS Investments continue to gain traction.”
He explained that newly effective offerings from KKR and Invesco have joined the space to contribute to the 136 percent overall increase in fundraising by non-traded REITs compared to this time last year.
Year-to-date July 2021, the top non-traded REIT sponsors are Blackstone Group with $12.36 billion, followed by Starwood Capital with $2.94 billon. Ares Real Estate Group raised $944 million, followed by Nuveen LLC ($314 million), FS Investments ($305 million) and Hines Interest ($265 million).
According to chairman Kevin Gannon, Stanger reaffirmed its 2021 fundraising estimate for non-traded REITs at $30 billion and increased its fundraising estimate for all alternatives to $65 billion, up from $60 billion last month.
“Stanger’s update has been influenced by improvements in fundraising in business development companies, interval funds and Delaware statutory trusts,” said Gannon.
In the non-traded perpetual-life business development space, Blackstone Private Credit Fund raised $937 million in July, bringing year-to-date 2021 fundraising to $6.92 billion. Blue Owl Capital raised $95 million in July in Owl Rock Core Income Corporation. Total year-to-date 2021 fundraising for Blue Owl Capital was $365 million, including $73 million in its traditional non-traded Owl Rock BDC which is now closed.
Stanger’s survey of top sponsors of alternative investments revealed nearly $39 billion raised year-to-date through July 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 identified by Stanger are Blackstone Group ($19.31 billion), Starwood Capital ($2.94 billion), Ares Real Estate Group ($1.047 billion), Bluerock Capital ($908 million), Griffin Capital ($702 million), Greenbacker Capital ($641 million), Inland Real Estate ($636 million), Blue Owl Capital ($593 million), Capital Square Realty ($449 million), and CION Investments ($422 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, real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations and consolidations.