Private placement real estate investment trusts saw their combined aggregate net asset value rise to $17.9 billion in Q4, a 15.6% quarter-over-quarter increase, according to data released this week by investment banking firm Robert A. Stanger & Co. These REITs now account for 16.1% of the $110.9 billion total aggregate NAV across publicly registered and private placement non-traded REITs, up from 14.1% of $109.9 billion in Q3. This growth highlights continued investor demand for private real estate strategies.
“With non-traded REITs continuing to attract private capital, it’s clear that the space remains a compelling component of diversified real estate portfolios” said Kevin T. Gannon, chief executive officer and chairman of Stanger.
Several key developments in Q4 further demonstrate the growth of the space:
- New Mountain Net Lease Trust completed a series of formation transactions on Jan. 2, 2025, launching with a 166-property, 15.5 million square foot net leased industrial portfolio. The portfolio was contributed in exchange for shares valued at approximately $546.2 million, while the REIT also raised $263.0 million in its private offering, primarily earmarked for redeeming legacy shareholders.
- BlackRock, Inc. entered the private placement REIT market, forming the BlackRock Monticello Debt Real Estate Investment Trust in partnership with MONTICELLOAM, LLC.
- Principal Credit Real Estate Income Trust sold its first $10 million in shares as part of a $150 million capital commitment from Principal Life and an unaffiliated insurance company.
“The rise in private placement NAV REITs and significant transactions like New Mountain’s seed portfolio underscore the continued maturation of the market. Additionally, BlackRock’s entry into the space signals increasing interest from major asset managers, further validating the strength of private real estate,” said Gannon. “By releasing this REIT-focused preview now, we are ensuring that investors and industry participants have access to the latest REIT data while we await BDC data in the coming months.”
Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
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