Non-Traded REITs Raise Fewer Funds In January

March 21st, 2023, 4:15 PM

Robert A. Stanger & Co has reported that non-traded alternative investment fundraising
reached $7.8 billion in January, with non-traded REITs posting the second-highest
fundraising month on record at $4.6 billion.
However, a closer look reveals that although non-traded REITs hit record highs, without
Blackstone's BREIT $4.5 billion investment from the Regents of the University of
California, non-traded REIT fundraising would have totaled just $596 million, the
lowest monthly level since December 2009.
Additionally, Stanger & Co reported that increased levels of redemption activity
continue, as REITs reached an estimated $4.6 billion of requests in the fourth quarter of
2022. Kevin T. Gannon, chief executive officer of Stanger, shared that the industry has
successfully met redemptions up to the 2% monthly and 5% quarterly caps to date, with
enough fund redemptions without tapping real estate asset sales. Gannon expects to see
similar results in 2023.
Financial Advisor Transitions consults advisors nationwide to explore employment
transition options and to preserve and protect their practice in any transition that they
make.

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Blog

Non-Traded REITs Raise Fewer Funds In January

March 21st, 2023, 4:15 PM

Robert A. Stanger & Co has reported that non-traded alternative investment fundraising
reached $7.8 billion in January, with non-traded REITs posting the second-highest
fundraising month on record at $4.6 billion.
However, a closer look reveals that although non-traded REITs hit record highs, without
Blackstone's BREIT $4.5 billion investment from the Regents of the University of
California, non-traded REIT fundraising would have totaled just $596 million, the
lowest monthly level since December 2009.
Additionally, Stanger & Co reported that increased levels of redemption activity
continue, as REITs reached an estimated $4.6 billion of requests in the fourth quarter of
2022. Kevin T. Gannon, chief executive officer of Stanger, shared that the industry has
successfully met redemptions up to the 2% monthly and 5% quarterly caps to date, with
enough fund redemptions without tapping real estate asset sales. Gannon expects to see
similar results in 2023.
Financial Advisor Transitions consults advisors nationwide to explore employment
transition options and to preserve and protect their practice in any transition that they
make.

Return to All