Non-traded REITs raised about $3.6 billion during the third quarter, down 22% from Q2 according to data from MTS Research Advisors (MTS). Year-to-date, the sector has raised $12.4 billion in equity which is 19% below the same period from 2013.
ARC Healthcare II and ARC – Retail Centers of America took in the most capital during the quarter with $751 million and $469 million respectively.
The top ten fundraisers accounted for 73% of all equity raised.
2014 has witnessed several liquidity events, which typically result in investors reinvesting proceeds into new non-traded REITs. Despite future expected liquidity events, MTS expects to see a continued decline in non-traded REIT fundraising during the fourth quarter. This could be due in part to the suspensions of sales for AR Capital and Cole Capital investment offerings.