Non-traded real estate investment trusts posted another month above the $1 billion mark after hitting $1.7 billion in sales in February, bringing 2021 fundraising to nearly $2.8 billion, according to investment bank Robert A. Stanger & Company.
“Non-traded REIT fundraising is starting the year off strong. We expect fundraising will continue to strengthen and are raising our 2021 non-listed REIT fundraising projection to $20 billion,” said Kevin Gannon, Stanger’s chairman and chief executive officer, who last month projected that REIT sales would reach $15 billion.
Blackstone Group leads year-to-date 2021 fundraising with nearly $2 billion, followed by Starwood Capital with $491 million. Black Creek Group has raised $121 million in sales, followed by Hines Interest with $73 million and Nuveen LLC with $40 million.
In the non-traded business development space, Blackstone Private Credit Fund, the first perpetual-life BDC in the space, raised $654 million in February, bringing its 2021 total to $2.1 billion.
Owl Rock Capital’s traditional non-traded BDC closed out with month with $20 million in sales, increasing the fund’s year-to-date total to $39 million. Owl Rock is in the process of launching a perpetual-life BDC dubbed Owl Rock Core Income Corporation, and Stanger believes that these new perpetual-life products “will shine a spotlight on the sector in 2021.”
Stanger’s survey of top sponsors of alternative investments revealed nearly $7.7 billion was raised year-to-date thru February 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 ($4.1 billion), Starwood Capital ($491 million), Bluerock Capital ($185 million), Black Creek Group ($491 million), Greenbacker Capital ($182 million), Black Creek Group ($159 million), Griffin Capital ($122 million), CION Investments ($112 million), Inland Real Estate ($105 million), GWG Holdings ($96 million), and Variant Investments ($93 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.