Sales of non-traded real estate investment trusts exceeded $3 billion for the five month in a row with $3.52 billion raised in October, according to Robert A. Stanger and Co.
Blackstone Real Estate Income Trust continues to lead with $2.41 billion raised in October, pushing the REIT’s cumulative fundraising since inception past the $40 billion mark. Starwood reported $587 million in fundraising for the month, followed by LaSalle Investment Management with $122 million.
“Non-traded REIT fundraising through October has reached $28.2 billion dollars, far surpassing the prior full-year record of $19.6 billion set back in 2013,” said Randy Sweetman, executive managing director of Stanger. “This incredible pace of capital formation continues to attract new entrants to the space. After suspending fundraising in the midst of several mergers, Cottonwood Communities has just re-entered the market, now structured as a NAV REIT.”
Stanger reconfirms its 2021 fundraising projection of $35 billion for non-traded REITs. Kevin Gannon, chairman of Stanger, said that the record-breaking influx of capital into non-traded REITs is “heavily influenced by the strong total returns posted by NAV REITs during the past year ranging from 9.4 percent to 27.4 percent.”
“As Blackstone continues to smash all records, surpassing $30 billion in total alternative fundraising year-to-date, we are raising our projection to $75 billion for all alternatives covered by Stanger,” Gannon added.
These include non-traded REITs, non-traded business development companies, interval funds, non-traded preferred stock of traded REITs, as well as DSTs, opportunity zone, and other private placement offerings.
Blackstone Group leads 2021 non-traded REIT fundraising with $19.38 billion, followed by Starwood Capital with $4.81 billon. Ares Real Estate Group has raised $1.39 billion, followed by FS Investments ($576 million), Nuveen LLC ($546 million), and Hines Interest ($421 million).
In the non-traded perpetual-life BDC space, Blackstone raised $1.56 billion in October, bringing their year-to-date 2021 BDC fundraising to $10.95 billion. Blue Owl Capital raised $328 million in October bringing their year-to-date 2021 fundraising to $1.02 billion, including $73.3 million in their now closed traditional BDC.
Stanger also noted that Apollo Debt Solutions BDC was declared effective at the end of October and is “expected to factor into the mix in November.” The non-traded perpetual-life BDC space continues to grow with multiple funds in the registration pipeline including one from HPS Investment Partners and a second from Blue Owl focused on the technology sector.
Stanger’s survey of top sponsors of alternative investments revealed more than $67.3 billion raised year-to-date through October via the retail pipeline.
The top alternative investment sponsors identified by Stanger are Blackstone Group ($30.38 billion), Starwood Capital ($4.81 billion), Cliffwater LLC ($3.23 billion), Ares Management ($1.88 billion), Bluerock Capital ($1.50 billion), Griffin Capital ($1.38 billion), Blue Owl Capital ($1.29 billion), Barings LLC ($1.01 billion), Inland Real Estate ($959 million), and Greenbacker Capital ($857 million).
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.