Blackstone Group, Others Seek to Revive Non-Traded REIT Industry
In a surprising move that could radically reshape the beleagured non-traded REIT industry, the $100 billion behemoth that is Blackstone Real Estate is launching its first non-traded REIT — Blackstone Real Estate Income Trust Inc. — but with major differences in its proposed fee structure and capital-raising process.
The Blackstone Group affiliate has filed an initial public offering to raise up to $5 billion from investors with plans to invest in stablized, income-oriented commercial real estate properties and securities.
The offering comes as somewhat of a contrarian move for Blackstone, which has had no trouble raising substantial sums for real estate investment through various other sources.
Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.