- March 1, 2017; Vol. 4, Number 3

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Buying and Selling — Quickly: The need for liquidity in the $85 billion nonlisted REIT sector

by Jordan Fishfeld

The world of real estate dramatically changed eight years ago. Banks cut off funding for most new residential and commercial mortgages following the economic debacle of 2008, creating a vacuum that was quickly filled by alternative lenders. New rules made private real estate deals accessible to the general public, with mixed results. An average investor can buy securities that were once available only to the big boys — the large institutional and wealthy individual investors. That’s great for issuers but creates problems for buyers who have not had an easy way to sell their securities once purchased. The need for liquidity has been growing as investors have been locked in for three to five years since the start of the recovery. The need for liquidity is most needed in longer term products, specifically the nonlisted REIT.

Nonlisted REITs make up a market worth more than $85 billion, owned by more than 1.2 million individual investors. REITs are securities backed by pools

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