Sales of nontraded REITs totaled more than $4.2 billion in the fourth quarter of 2019, their ninth consecutive quarterly increase since fundraising hit a bottom in third quarter 2017, and their highest quarterly total in more than five years. Nontraded REITs closed out 2019 with more than $11.8 billion raised, their highest fundraising total since 2014.
The report compiled by Robert A. Stanger & Co. attributed the big numbers to the entrance of institutional asset managers — such as Blackstone, Starwood and LaSalle — into the nontraded REIT market, saying it has transformed the industry and will continue to fuel future fundraising — particularly as retail investors seek to diversify their investment portfolios to secure them against market uncertainty. Investors “now have access to real estate funds managed by the same well-regarded firms that institutional investors turn to,” the report notes.
“Stanger is projecting that nontraded REITs will raise more
