Nonlisted REIT fundraising fell to $248 million in May 2020, down 22.4 percent from $319 million in April, reported Robert A. Stanger & Co. This follows near record first quarter 2020 investment in nonlisted REITs totaling over $5.6 billion, reflecting a major pullback of capital placement into alternative investment real estate due to uncertainties related to COVID-19.
“The last time we saw nonlisted REIT fundraising below $250 million was in July 2017 at $224 million, signaling the bottom of the previous downward cycle,” said Kevin T. Gannon, chairman and CEO of Robert A. Stanger & Co. “Although nonlisted REIT fundraising declined further month-over-month in May, the de-acceleration of the decline coupled with the imminent relaunching of real estate offerings at several broker-dealers may signal a bottoming of this current three-month trend. Thus far, it appears that most nonlisted REITs, particularly NAV REITs, have held up relatively well from both a perform
