Non-traded REITs Sales Increase in June 2020

Concerned about your investment in a non-traded REIT or other alternative investment? 

According to an article in the DI Wire this week, non-traded REIT sales may be recovering in the second quarter of 2020 after a steep decline in sales in April and May.

The DI wire, sourcing investment bank Robert A. Stanger with the data, states that non-traded REIT sales rose to $454 million in June 2020, an 83 percent increase compared to the May total of $247 million and up 42 percent from $319 million in April.

The industry appeared to hit rock bottom in May after sales dropped drastically amidst the Covid-10 global pandemic beginning in March, the article noted. Between March and May non-traded REIT sales declined close to 90% from the beginning of the year, according to data provided by Stanger.

According to the article, the following are the top alternative investment sponsors (highest sales) in 2020:

Blackstone Group ($4.9 billion)
Black Creek Group ($929 million)
Griffin Capital ($664 million)
Bluerock Capital ($583 million)
Owl Rock Capital ($478 million)
Starwood Capital ($444 million)
Inland Real Estate ($389 million)
GWG Holdings ($240 million)
CION Investments ($222 million)
LaSalle Investment Management ($216 million).

According to Stanger’s survey of top sponsors of alternative investments, $13.1 billion was raised year-to-date through June via the retail sales. This included publicly registered non-traded REITs, non-traded business development companies (BDCs), interval funds, non-traded preferred stock of traded REITs, as well as Delaware statutory trusts, opportunity zone funds, and other private placement offerings.

Are non-traded REITs a suitable investment for you?

The White Law Group has represented numerous investors in securities fraud claims against their brokerage firm for improper recommendations of non-traded REITs, BDCs and private placement offerings. 

Non-traded REITs are rarely, if ever, are suitable for short-term investors and even long-term investors must be willing to bear the risks of illiquidity. You should consider the front-end cost relative to the sales costs you would incur to buy and sell other securities during the same holding period as the life of the REIT. You may also want to consider how much share price appreciation and distributions you will need to receive to overcome these front-end charges.

Brokers are required to make suitable investment recommendations that are in line with the customer’s age, financial situation, investment objective and investment experience. Investment in a non-traded REIT may be unsuitable, or the amount or frequency of transactions may be excessive and therefore unsuitable for a given customer.

If you have suffered losses investing in an non-traded REIT or other alternative investment, the White Law Group may be able to help you file a claim against your brokerage firm.

Free Consultation with a Securities Attorney

For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For information on the firm please visit www.whitesecuritieslaw.com.