Sales of non-traded real estate investment trusts broke another all-time monthly record in August after raising nearly $3.69 billion, according to Robert A. Stanger and Co., marking the third consecutive month over the $3 billion mark.
Blackstone Real Estate Income Trust continues to dominate the non-traded REIT space with $2.44 billion raised this month. Starwood reported $647 million as it continues to record strong month-over-month gains, while Black Creek Group, now owned by Ares, reported $179 million.
“Non-traded REIT fundraising through August has reached $21.3 billion dollars, which surpasses the prior full-year record of $19.6 billion set back in 2013. This incredible pace of capital formation continues to attract new entrants to the space with Prudential (PGIM Investments) registering an offering at the end of August,” said Randy Sweetman, Stanger’s executive managing director.
Kevin Gannon, chairman and chief executive officer, said that Stanger is now raising its 2021 non-traded REIT fundraising projection to $35 billion and bumping its estimate of fundraising for all alternative investments to $70 billion.
Stanger previously projected that non-traded REITs would raise $30 billion this year, while retail alternative investments were expected to raise $65 billion. Gannon said that the projection increase was influenced by “the record-breaking influx of capital into non-traded REITs and [business development companies], and continued improvements in fundraising for interval funds and [Delaware statutory trusts].”
Blackstone Group leads 2021 REIT fundraising with nearly $14.80 billion, followed by Starwood Capital with $3.58 billon. Black Creek Group/Ares reported $1.12 billion in sales, followed by FS Investments ($432 million), Nuveen LLC ($387 million), and Hines Interest ($312 million).
In the non-traded business development company space, Blackstone Private Credit Fund, the first perpetual-life BDC, raised $1.39 billion in August bringing year-to-date 2021 fundraising to $8.31 billion.
Blue Owl Capital raised $134 million in August bringing their year-to-date 2021 fundraising total to $499 million, including $73.3 in their traditional BDC, which is now closed.
Stanger noted that the non-traded perpetual-life BDC space continues to grow, with new deals from Apollo and HPS Investment Partners in the registration pipeline.
Stanger’s survey of top sponsors of alternative investments revealed more than $49 billion raised year-to-date through August 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 ($23.14 billion), Starwood Capital ($3.58 billion), Black Creek/Ares ($1.44 billion), Bluerock Capital ($1.03 billion), Griffin Capital ($848 million), Blue Owl Capital ($738 million), Inland Real Estate ($711 million), Greenbacker Capital ($687 million), CION Investments ($606 million), and FS Investments ($566 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.