Sales of non-traded REITs reached a massive $4.63 billion in November 2021, according to recent data from Robert A. Stanger and Co., reported by The DI Wire. Blackstone alone raised over $3 billion in November, while Starwood reported raising over $800 million in the same month.
“Non-traded REIT fundraising through November has reached $32.8 billion dollars, more than 3 times their full-year 2020 total, as this incredible pace of capital formation continues to attract new entrants to the space,” said Randy Sweetman, executive managing director at Robert A. Stanger and Co.
“In our view, this record-breaking influx of capital into non-traded REITs is heavily influenced by the strong total returns posted by net asset value REITs during the past year, with the top 10 ranging from 11.5 percent to 27.4 percent,” said Kevin Gannon, chairman of the company.
Nearly all segments of the real estate universe continue to remain white hot, including multifamily.
“Industrial, multifamily, even farmland, all of these segments posted strong returns in the past twelve months,” said Scott Hawksworth, the co-founder of MultifamilyInvestor.com. “But certainly multifamily continues to attract the lion’s share of attention from accredited investors. And I expect that trend to continue into 2022. There’s still plenty of cash on the sidelines, looking for the next good opportunity.”