Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 16 January 2020

Blackstone's Non-Traded REIT Raised $8.7Bln in 2019, Up 201 Percent From 2018

Blackstone Group's entry in the non-traded REIT sector continues to hit home runs. The company, Blackstone Real Estate Income Trust, which was launched in 2016, raised $8.7 billion of equity capital last year, according to Blue Vault. That was up from the $2.9 billion it had raised in 2018.

Commercial Real Estate Direct Staff Report

Blackstone Group's entry in the non-traded REIT sector continues to hit home runs.

The company, Blackstone Real Estate Income Trust, which was launched in 2016, raised $8.7 billion of equity capital last year, according to Blue Vault. That was up from the $2.9 billion it had raised in 2018.

The Cumming, Ga., research company, which closely tracks the non-traded REIT sector, in addition to the business development company sector, noted that Blackstone had raised $1.4 billion in December alone. The company has been putting that capital to use, most recently buying a 49.9 percent stake in the real estate assets of the MGM Grand hotel resort and Mandalay Bay resort in Las Vegas in a deal valuing the two at $4.6 billion.

While Blackstone's capital raising increased the most, in dollar terms of all non-traded REITs, JLL Income Property Trust saw a 230 percent increase in the amount of capital it raised, to $452.2 billion from $137 billion in 2018, according to Blue Vault.

The two are among a growing number of non-traded REITs sponsored by institutional investment managers. The JLL entry is sponsored by LaSalle Investment Management, which in 2011 had converted what then was the Exelsior LaSalle Property Fund Inc. into a non-traded REIT.

Other institutional investment managers that have launched non-traded REITs include Starwood Capital Group, TH Real Estate, Oaktree Capital Management and Cantor Fitzgerald & Co.

Starwood's entry, Starwood Real...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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  • What Does Increased Construction Mean for Apartment REITs?
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shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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