Sales of non-traded real estate investment trusts broke another all-time monthly record in June after raising $3.5 billion, according to Robert A. Stanger and Co., marking the fourth consecutive month over the $2 billion mark.
This was in large part due to the sales of Blackstone Real Estate Income Trust, which scored another record-breaking month after raising more than $2.5 billion. In addition, Starwood Capital reported $542 million raised in June, while Black Creek Group, now owned by Ares, reported $181 million. KKR broke escrow with $92.5 million, FS Investments accelerated to $94 million, and Nuveen LLC raised more than $70 million.
“Real estate continues to be a sound solution to the needs of the investment community today with [net asset value] REITs gaining great respectability from the influence of these institutional quality managers,” said Kevin Gannon, Stanger’s chairman and chief executive officer. “Stanger now projects non-traded REIT fundraising will reach $30 billion this year, while retail alternative investments are projected to raise a staggering $60 billion.”
Blackstone Group leads 2021 fundraising with $10 billion, followed by Starwood Capital with $2.4 billon. Black Creek Group reported $789 million in sales, followed by Nuveen LLC ($257 million), FS Investments ($233 million) and Hines Interest ($222 million).
In the non-traded business development company space, Blackstone Private Credit Fund, the first perpetual-life BDC, raised $846 million in June bringing year-to-date 2021 fundraising to nearly $5.7 billion.
Owl Rock Capital raised $71 million in June in their newly launched non-traded perpetual-life BDC, Owl Rock Core Income Corporation. Total year-to-date 2021 fundraising for Owl Rock Capital was $270 million, including $73 million in their traditional non-traded BDC, which is now closed.
Stanger’s survey of top sponsors of alternative investments revealed nearly $32 billion raised year-to-date through June 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, 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 ($15.7 billion), Starwood Capital ($2.4 billion), Black Creek Group ($870 million), Bluerock Capital ($721 million), Inland Real Estate ($572 million), Greenbacker Capital ($553 million), Griffin Capital ($547 million), Blue Owl Capital ($461 million), CION Investments ($422 million), and Capital Square ($378 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.