Clients Increase Their Demands to Cash Out of REITs Amidst Potential Recession

Posted on February 2nd, 2023 at 1:50 PM
Clients Increase Their Demands to Cash Out of REITs Amidst Potential Recession

From the Desk of Jim Eccleston at Eccleston Law.

Investors collectively have rushed to cash out of some non-traded real estate investment trusts (REITs) during the fourth quarter, which has boosted the demand to redeem shares of net asset value REITs by $1 billion, according to investment bank Robert A. Stanger & Co.

Furthermore, KKR & Co., another private equity firm that recently entered the REIT industry, announced that investors’ demands to redeem shares surpassed internal restrictions, which has prompted KKR to refuse some investors’ requests to initiate a redemption. KKR Real Estate Select Trust announced within the last month that it had received repurchase requests of $128 million, or 8.1% of the fund’s aggregate NAV, according to a filing with the Securities and Exchange Commission (SEC).

Stanger estimated that non-traded REIT investors redeemed $4.7 billion in shares over the last three months of 2022, compared to only $3.7 billion during Q3. Another concern regarding non-traded REITs is that redemptions easily outpaced sales during the last quarter. Stranger predicts that the industry should be prepared for more investor redemptions in 2023.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

September 16, 2025
Former Morgan Stanley Advisors Win Partial Court Victory in Client Solicitation Dispute

Two former Morgan Stanley advisors in Hackensack, New Jersey have defeated Morgan Stanley’s initial effort to block them from soliciting clients, according to an August 15 order from New Jersey Superior Court.

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.