Nonlisted REIT fundraising shows early signs of recovery

Nonlisted REIT fundraising rose to $454 million in June 2020, up 83 percent from $247 million in May and up 42 percent from $319 million in April, reported Robert A. Stanger & Co.

Second quarter 2020 fundraising totals were slightly more than $1 billion, following near record first quarter investment in nonlisted REITs totaling more than $5.6 billion.

“The first half of 2020 has seen the best and worst of times from a fundraising standpoint. The year 2020 began with nonlisted REIT fundraising on a record-breaking pace of approximately $2.4 billion per month in both January and February; however, the brakes were applied in March with the outbreak of the pandemic, and fundraising continued to slow through May, declining about 90 percent from early in the year. The second quarter, however, ended on a positive note, with a substantial increase in June fundraising, reflecting that the industry did indeed hit bottom in May and the recovery appears to have begun,” sa