The yield on 10-year Treasury bonds as of June 1, 2016, was 1.85%, compared to 2.13% one year earlier, indicating a widening spread between commercial real estate capitalization rates and the cost of debt for nontraded REITs.  This spread provides nontraded REITs with a margin of safety if property values should fall.

  While average capitalization rates for commercial real estate have been flat for the past few months, they are still more than 100 bps lower than the last peak and 12 bps lower than March, 2015.

    As of 1Q 2016, core sectors of the commercial real estate market are estimating 3.5% to 4.0% average NOI growth for 2016, which exceeds 2016 core inflation expectations of 1.6%.

May 2016 Equity Raised Nontraded REIT Sales $299,700,537 Nontraded BDC Sales $107,035,281 *While the Blue Vault reported monthly sales figures do include the vast majority of all Nontraded REIT and Nontraded BDC sales, it does not include all. Blue Vault soon hopes to receive all additional monthly sales from those sponsors currently not providing the…

A new accounting standard finalized by the FASB in April, 2015, and required of all nontraded REITs in their 2016 financial reports, reduces the total debt shown on the REIT balance sheets by the amount of deferred financing costs which were previously shown as part of the REIT’s liabilities.  This has the effect of lowering…

Two nontraded REITs focus their real estate investments in parking facilities.  MVP REIT and MVP REIT II had a total of 5,365 and 1,220 parking spaces, respectively, within their parking facility portfolios as of March 31, 2016.

       Four nontraded REITs had significant interests in self storage properties in 2016, with over 184 properties in the U.S. and Canada.