Non-Traded REIT Redemptions Exceed 350% of Fundraising in February

Posted on April 3rd, 2023 at 1:31 PM
Non-Traded REIT Redemptions Exceed 350% of Fundraising in February

From the desk of Jim Eccleston at Eccleston Law 

Fundraising among non-traded real estate investment trusts has dipped to $489 million in February 2023, which constitutes the lowest point since August 2020. Further, monthly redemptions have surpassed $1.7 billion, which amounts to 351% of fundraising as well as 1.6% of reported net asset value for the industry, according to a report released by Robert A. Stanger & Co.

Fundraising for the industry has totaled only $5.1 billion for the year-to-date period that ended on February 28, 2023. “The [non-traded REIT] industry deserves high marks for its commitment to providing liquidity to investors at levels never seen before”, according to Stanger chairman Kevin Gannon. Stanger’s report focuses on fundraising of all alternative investments offered to retail purchasers including publicly registered non-traded REITs, non-traded business development companies, interval funds, non-traded preferred stock of traded REITs, Delaware statutory trusts, opportunity zone funds, and other private placement offerings.

Year-to-date 2023 retail alternative investment fundraising amounted to $11.2 billion through February, paced by NAV REITs at $5.1 billion, interval funds at $2.6 billion, non-traded BDCs at $1.3 billion, and Delaware statutory trusts at $1.0 billion. Non-traded REITs have raised more than $5.0 billion year-to-date; Blackstone Group leads 2023 fundraising with $4.4 billion, followed by FS Investments with $146.6 million, Starwood with $100.0 million, Ares Real Estate Group with $72.6 million and Hines with 60.3 million.

 

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

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

November 26, 2025
Former GWG Chair Charged in Alleged $150 Million Fraud Scheme as Investor Losses Mount

Federal prosecutors have intensified scrutiny of the long-running collapse of GWG Holdings Inc., unveiling criminal charges against Bradley Heppner, the former chair of both GWG and Beneficient.

November 25, 2025
Financial Advisor Accepts FINRA Bar Amidst Investigation into Alleged Misappropriation

A financial advisor affiliated with a credit union connected to Raymond James Financial agreed to an industry bar after declining to cooperate with FINRA’s investigation into allegations that he misappropriated client funds.

November 24, 2025
Kyle Busch Alleges Considerable Losses in Indexed Universal Life (IUL) Scheme

Kyle Busch, a two-time NASCAR Cup Series champion, and his wife Samantha announced that they lost more than $8.6 million in what they describe as a “devastating financial scheme” involving an Indexed Universal Life (IUL) insurance policy.