Over the past few decades, open-ended real estate funds cemented their position as a preferred vehicle for institutional investors to access the core and core-plus sectors. Their scale, diversification and income-oriented characteristics attracted a broad range of institutional investors seeking stable, long-duration returns. For much of that period, the structure worked as intended; periodic liquidity windows, steady inflows and manageable redemption activity kept these vehicles functioning smoothly.
Then came 2022, when sharp rises in interest rates led to a broader repricing of commercial real estate, triggering return challenges and sustained increases in redemption requests across major open-end fund platforms.
At peak levels, redemption queues across the ODCE (NCREIF Open End Diversified Core Equity) universe exceeded $40 billion to $50 billion. For several large platforms, this represented 10 percent to 20 percent of total net asset value. While conditions have
