Sales of non-traded real estate investment trusts topped $1.1 billion in December 2020, the highest total since February and a 30 percent increase from the $859 million raised in November, according to investment bank Robert A. Stanger & Company.
Non-traded REIT sales during the fourth quarter of 2020 reached $2.6 billion, lifting 2020 fundraising to $10.8 billion, a decrease of 8.5 percent compared to 2019.
“The recovery of non-listed REIT investment is well underway, and 2020 fundraising broke through our post-COVID projection of $10 billion,” 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 leads 2020 fundraising with nearly $7.8 billion, followed by Black Creek Group with close to $1.1 billion in sales ($949 million in lifecycle and $103 million in net asset value REIT sales), aided by the recycling of distributions from its liquidation of Industrial Property Trust. Starwood Capital Group raised $966 million, followed by LaSalle Investment Management ($292 million) and Hines Interest ($221 million). These five sponsors accounted for 95 percent of all non-traded REIT fundraising in 2020.
Stanger’s survey of top sponsors of alternative investments revealed $26.6 billion in funds raised in 2020 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 and other private placement offerings.
The top alternative investment sponsors in terms of capital formation are Blackstone Group ($7.8 billion), Black Creek Group ($1.3 billion), Owl Rock Capital ($1.3 billion), Griffin Capital ($1 billion), Starwood Capital ($966 million), Bluerock Capital ($922 million), Inland Real Estate ($749 million), GWG Holdings ($514 million), CION Investment ($514 million), and ExchangeRight ($503 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.