Deloitte & Touche reported in a recent webinar that non-traded REITs compromise a growing part of the real estate market, both in terms of total real estate assets and sources of equity fundraising. The opportunity for non-traded REITs is lying on the rebound in commercial real estate markets significant money flowing into the sector. Moreover, according to analysis by Blue Vault Partners shows that for the 15 nontraded REITs that have already completed full-cycle events between January 2013 and June 2014, the average number of months spent ‘maturing’ the portfolio dropped from 2.3 years down to 1.8 years.
Excerpts from the Article:Non-traded REITs comprise a growing part of the real estate market, both in terms of total real estate assets and sources of equity fundraising, according to Deloitte & Touche, which reported in a recent webinar that such liquidity events are happening at a much more rapid pace. With the rebound in commercial real estate markets and significant money flowing into the sector, non-traded REITs are jumping at the opportunities. Of the eight liquidity events in 2014, six had an average lifecycle of a little less than four years. That compares to an historical average of seven to 10 years, although that average included the last recession when little commercial real estate activity was occurring, according to the accounting firm.
Citation and link:
Heschmeyer, Mark. “Seven Non-Traded REITs Exploring Sales or Mergers.” CoStar News., 29 Oct. 2014 Web. 03 Nov. 2014.