Non-Traded REITs Weigh Exit Strategies
Jul 20, 2016 |
Non-traded REITs reaching maturity are facing a quandary when it comes to choosing the most lucrative exit strategy and the timing of their liquidation events.
There are a number of non-traded REITs that are getting a bit “long in the tooth” and are looking at best case scenarios for exit strategies, says Allan Swaringen, president and CEO of JLL Income Property Trust, a non-listed, daily valued perpetual life REIT that owns and manages a diversified portfolio of assets. Yet despite the improvement in property values in recent years and buyer demand for commercial real estate, unwinding non-traded REITs and maximizing values for shareholders is no easy task.
The short list of potential exit strategies may be even shorter these days given the challenging IPO market. The equities market is back to a new high, but 2016 has been a very, very bumpy road, says Swaringen.
The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.