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

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

March 4, 2026
Modern Fraud Schemes Escalate in Scale and Sophistication

A recent panel discussion at the Financial Services Institute OneVoice conference in San Diego highlighted how rapidly evolving fraud schemes continue to victimize both retail and wealthy investors.

March 3, 2026
FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades

The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co.

March 2, 2026
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval.