NontradedREIT sales figures slowedto a trickle in the 2016 first quarter and two typical powerhouses in the salesarena were absent from the top-sponsors ranking, the latest quarterly data fromRobert A. Stanger & Co. Inc. showed.

Together,nontraded REIT sponsors logged a little more than $1.40 billion in sales duringthe quarter, with the top five sponsors during the period accounting for about 57.5%of the total.

To besure, observers expect 2016 sales figures overall to be low, with now out of the picture andnew regulations intendedto boost broker/dealer fee transparency in play. On April 11, FINRA Regulatory Notice15-02, which requires broker/dealers to disclose up front the true value of shares,incorporating fees, went into effect.

"Themost recent quarter of $1.4 billion of fundraising in the Non Traded REIT spaceis a low not seen since Q1 [of] 2009 in part reflecting a much lower level of liquidityevents in the space and the transition to deferred commission products such as dailyNAV REITs and T shares in response to FINRA Rule 15-02," Kevin Gannon, managingdirector at Robert A. Stanger & Co., said in an email.

In January,Gannon had projected $7 billion to $8 billion of nontraded REIT sales in 2016. Hereiterated that projection in his email.

"Stangeris projecting fundraising for the Non Traded REIT space to be in the range of $7.0billion to $8.0 billion for 2016 with Interval Funds focused on real estate investmentslikely garnering $1.5 billion or more," he said.

Observershad predicted other sponsors would pick up the slack in the market created by AmericanRealty Capital's departurefrom the space. Griffin CapitalCorp., the top sponsor by a landslide in 2015, was notably absent fromthe first-quarter ranking, however.

Afterthe first quarter, the top five list had some new names. emerged as the top sponsor after the first three months of the year, with $199.2million of sales, representing a 14.2% market share.

SteadfastREIT Investments LLC took second place in the first-quarter ranking, with $178.6million of sales, representing a 12.7% market share, followed by in thirdplace, with $157.0 million in sales, reflecting an 11.2% market share.

Cole Capital Corp.,the nontraded REIT sponsor owned by VEREITInc., climbed back into the top-sponsor ranking with $144.2 millionof sales — a 10.3% market share. The firm had suffered a crisis of confidence andcompromised relationships with broker/dealers in 2015 as a result of the falloutof the accounting scandal at American Realty Capital Properties, the previous incarnationof its owner.

"Cole … continues to add new selling agreements furtherdiversifying its selling base," a company spokesman said in an email. "Thecompany has been working with advisers in preparation for [FINRA Regulatory Notice]15-02, and is poised once again to be a leader as the industry continues to evolve."

Industrial PropertyTrust Inc. was the top nontraded REIT real estate program at the closeof the first quarter, having raised $190.6 million in sales, representing a 13.6%market share.

Steadfast ApartmentREIT Inc. and Carey WatermarkInvestors 2 Inc. took second place and third place, respectively, inthe top real estate program rankings.