Sales of non-traded real estate investment trusts reached close to $2.64 billion in April, marking the second consecutive month of more than $2 billion raised and setting an all-time record for monthly sales.
“Non-traded REIT fundraising has surpassed our expectations causing us to revise our earlier estimates for 2021 to $25 billion, a record-breaking year,” said Kevin Gannon, Stanger’s chairman and chief executive officer, who, in late March, projected that REIT sales would reach $20 billion.
Blackstone Group leads 2021 fundraising with $5.43 billion, followed by Starwood Capital with $1.34 billon. Black Creek Group has raised $404 million, followed by Hines Interest with $148 million, and Nuveen LLC with $137 million.
In the non-traded business development space, Blackstone Private Credit Fund, the first perpetual-life BDC, raised an estimated $1 billion in April, bringing year-to-date 2021 fundraising to nearly $4.09 billion.
Owl Rock Capital raised a total $72 million in April, including $17 million in their traditional non-traded BDC and $55 million in their newly launched non-listed perpetual-life BDC, Owl Rock Core Income Corporation. Total year-to-date 2021 fundraising for Owl Rock Capital was $154 million.
Stanger said that the launch of these new perpetual-life products will continue to shine a spotlight on the business development company sector in 2021.
Stanger’s survey of top sponsors of alternative investments revealed more than $18 billion raised year-to-date through April 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 ($9.54 billion), Starwood Capital ($1.34 billion), Greenbacker Capital ($482 million), Black Creek Group ($466 million), Bluerock Capital ($450 million), Griffin Capital ($309 million), Owl Rock Capital ($297 million), Inland Real Estate ($278 million), CION Investments ($244 million), and Variant Investments ($222 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.