Sales of non-traded real estate investment trusts reached an estimated $2.97 billion in May, marking the third consecutive month over the $2 billion mark and setting a new record for monthly sales. Through May 2021, non-traded REITs raised a total of $10.69 billion.
“Non-traded REIT fundraising continues to surpass our expectations and is on track to meet our revised 2021 estimate of $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 $7.48 billion, followed by Starwood Capital with $1.85 billon. Black Creek Group raised $608 million, followed by Hines Interest with $195 million, and Nuveen LLC with $186 million.
In the non-traded business development space, Blackstone Private Credit Fund, the first perpetual-life BDC, raised an estimated $801 million in May bringing year-to-date 2021 fundraising to $4.8 billion.
Owl Rock Capital raised $46 million in May 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 $199 million, including $73 million in their traditional non-traded BDC which is now closed.
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 nearly $25 billion raised year-to-date through May 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 ($12.30 billion), Starwood Capital ($1.85 billion), Black Creek Group ($670 million), Bluerock Capital ($567 million), Greenbacker Capital ($517 million), Griffin Capital ($415 million), Inland Real Estate ($403 million), Owl Rock Capital ($387 million), CION Investments ($326 million), and Capital Square Realty ($316 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.