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Blackstone takes commanding share of nontraded REIT market

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Blackstone takes commanding share of nontraded REIT market

Blackstone Group LP has taken a decisive lead in nontraded real estate investment trust sales as the market overall has contracted.

The private equity giant, which entered the nontraded REIT field in 2016 with Blackstone Real Estate Income Trust Inc., logged $1.39 billion of sales through that vehicle in the first three quarters of 2017, representing a 41.9% market share of the $3.3 billion sales total among all sponsors during the period, according to data from the investment banking firm Robert A. Stanger & Co. Inc.

Griffin Capital Co. LLC was the second-highest-selling sponsor, with $283.2 million of sales, representing an 8.5% market share, followed closely by Carter/Validus Advisors with $271.5 million of sales for an 8.2% market share.

Nontraded REIT sponsors are on track to hit $4.4 billion to $4.5 billion of sales for the full year, a spokesperson for the firm said in an email. The projected total would put the industry on par with 2016's total, which represented a multiyear low point for the industry undercut by the departure of key sponsors and a round of regulatory changes meant to augment broker-dealer fee transparency. In 2015, sponsors reported $10.00 billion of sales.