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Which sponsor of nontraded REIT programs has two open offerings focused on investments in self-storage properties, student housing and senior housing properties?

Which nontraded REIT recently announced a merger which will add 61 healthcare facilities to its portfolio of 56 healthcare and 29 data center properties?

June 19, 2019

Answer: On April 11th, Carter Validus Mission Critical REIT II, Inc. announced the entry into a merger agreement with Carter Validus Mission Critical REIT, Inc. The merger, if consummated, would add 61 healthcare properties to its portfolio and create a combined company with a total enterprise value of approximately $3.2 billion.

How many sponsors of nontraded REITs have raised over $1 billion since 1990?

April 30, 2019

How many sponsors of nontraded REITs have raised over $1 billion since 1990? Answer: 22 Sponsor Cumulative Capital Raise since 1990 ($ Mill) Rank AR Global  $17,933.3 1 Inland Real Estate Investment Corporation $17,471.9 2 CIM Group $13,580.0 3 CNL Financial Group $11,864.4 4 Wells Real Estate Funds  $11,747.6 5 W. P. Carey Inc. $10,075.1 …

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Deferred financing costs are amortized over the maturities of nontraded REIT debt financing. What is the range of annualized cost of debt financing that these expenses add to the weighted average cost of debt financing (calculated based upon the stated interest rates for mortgages and other financing)?

March 28, 2019

Answer: The additional annualized deferred financing costs can add anywhere from 0.05% to 1.44% to the annualized cost of debt financing. For a sample of 38 nontraded REITs with deferred financing costs, the average additional cost of borrowing was 0.36% annualized, added to the weighted average cost of debt of 4.33% for a total average cost of borrowing of 4.66%.

What was Stephen A. Schwarzman’s (CEO of Blackstone Group, the sponsor of Blackstone Real Estate Income Trust, Inc., a nontraded REIT) estimated net worth as of 2019?

March 21, 2019

Answer: According to Forbes, Mr. Schwarzman’s estimated net worth was $13.3 billion as of February 25, 2019. The son of a dry goods store owner, he founded private equity firm Blackstone with fellow billionaire Peter Peterson in 1985. He has pledged or given away $350 million to Yale University, New York Public Library and others. He was ranked 34th on Forbes 2018 list of the 400 richest Americans.

Bluerock Total Income+ Real Estate Fund, an Interval Fund, surpassed $1 billion in assets in 2018. According to its 2018 annual report, how did the volatility of the fund’s share values compare to the volatility of the leading stock and public REIT indices?

March 8, 2019

Answer: The fund, since inception in October 2012, has recorded approximately 90% lower volatility than leading stock and public REIT indices.  The fund has paid 23 consecutive quarterly distributions and its latest distribution is equivalent to a 5.25% annualized rate based on the September 26, 2018 record date NAV of $30.27 per share, and an effective 6.4% (A Share) distribution rate on the inception price of $25.00 per share.

As of October 31, 2018, the date with the most recently filed semi-annual and annual statements, how many interval funds had net assets in excess of $1.0 billion?

February 14, 2019

Answer:  Eight interval funds had net assets in excess of $1.0 billion, led by Stone Ridge Trust II ($6.0 billion), Stone Ridge Trust V ($3.5 billion), ACAP Strategic Fund ($3.3 billion), Griffin Institutional Access Real Estate Fund ($2.6 billion), and Versus Capital Multi-Manager Real Estate Income Fund ($2.5 billion).

Which Business Development Company (“BDC”) had investments in the common stock of at least 25 different nontraded REITs as of September 30, 2018, with a total cost basis of over $22 million?

January 31, 2019

Answer: MacKenzie Realty Capital, Inc., a nontraded BDC, owned common shares in at least 25 different nontraded REITs as of September 30, 2018. The cost basis of the 19 million shares was $22.6 million as of September 30, 2018, with an estimated fair value of $25.2 million. The BDC’s largest investment among the nontraded REITs was in KBS REIT II, Inc., in which it held 1.6 million shares with a fair value of $6.56 million at that date, and a cost basis of $3.65 per share. The BDC also owned 14.7 million shares of Highlands REIT, Inc. with a cost basis of $0.197 per share.

Which previously nontraded REIT completed its full liquidity event when its last tranche of common shares were converted to listed shares on January 9, 2019?

January 16, 2019

American Finance Trust, Inc. (“AFIN”) announced on December 20, 2018, that all issued and outstanding shares of its Class B-2 common stock would automatically convert into shares of its Class A common stock on January 9, 2019.  Class A shares trade on the Nasdaq under the ticker symbol AFIN.  The Class B-2 shares represent approximately 25% of AFIN’s total outstanding shares. As of the conversion date, 100% of AFIN’s common shares became tradeable, completing its full liquidity event.

Which sponsor of a nontraded REIT has been investing in real estate since 1934 and had $988 billion in assets under management, including $45 billion in U.S. real estate as of September 30, 2018?

January 10, 2019

Nuveen Global Cities REIT is sponsored by Nuveen. The REIT is currently offering up to $5 billion of common stock in a perpetual life offering, featuring monthly Net Asset Values (NAVs). The public offering includes four share classes (T, S, D, and I shares). Teachers Insurance and Annuity Association of America (“TIAA”) is the ultimate parent company of TIAA Global Asset Management/Nuveen.

Which previously nontraded REIT is now listed on the Nasdaq Global Select and will have the final tranche of its common stock converted to listed stock on January 15, 2019?

December 12, 2018

Answer: American Finance Trust (AFIN) listed a portion of its outstanding shares on the Nasdaq on July 19, 2018, and the final portion of its common shares (Class B-2) will convert to Class A shares on January 15, 2019. The shares reached a high of $17.76 on September 20 and recently traded at $13.77 per share.