Newport Beach, CA (PRWEB) September 12, 2013
Recent industry reports* state that sales of non-traded REITs have increased 65 percent compared to the same period in 2012, recording the highest ever half-year total for the industry. The substantial rise in non-traded REIT fundraising can be attributed to a variety of factors, including demand for hard asset-backed securities amidst inflation uncertainty, the less-desirable low-interest rates provided by fixed-income alternatives, and investors’ continued apprehension to commit capital to traded equities. The substantial rise in non-traded REIT fundraising can be attributed to a variety of factors, including the demand for hard asset-backed securities amidst inflation uncertainty, the less-desirable low-interest rates provided by fixed-income alternatives, and investors’ continued apprehension to commit capital to traded equities.
The measurable increase in non-traded REIT fundraising has correspondingly caused a surge in secondary market purchase activity. Since its launch in February 2013, REITbid.com, an online auction platform for the buying and selling of existing publicly registered non-traded real estate investment trusts (REITs) and limited partnerships (LPs), has experienced significant success selling shares of illiquid investments, including:
Auctions of non-traded REIT and LP shares on REITbid.com attract investors by providing benefits not found in primary market offerings. Secondary market shares often trade at substantial discounts to original share price, have considerably reduced acquisition costs, and the REITs themselves have demonstrated track records of performance for investors to evaluate prior to purchasing. These benefits, coupled with a constant supply of sellers urgently seeking liquidity for their shares, have made REITbid.com a leading venue for existing non-traded REIT and LP investors.
In the July 30, 2013 Investment Program Association (IPA) news release, IPA President and CEO Kevin M. Hogan stated that “Investors in today’s yield-starved environment are eager for sources of above-average income and for the portfolio diversification provided by investments in hard assets and smaller companies. These external concerns will continue to underpin investment in the second half of 2013.”
REITbid was founded by a team of senior real estate executives led and financed by William Lange and Ray Wirta. Lange has more than 35 years’ experience in real estate auction marketing and is chairman of the LFC Group of Companies, a pioneer in online auction solutions. Wirta has more than 40 years’ experience in commercial real estate and is the former chief executive officer and a current director of CBRE. REITbid is owned by Share Trading Associates, LLC of Newport Beach, Calif., and managed and operated under a license agreement as a branch of JRL Capital Corporation, Members FINRA and SIPC. For more information, visit REITbid.com.
*Robert A. Stanger & Company; Investment Program Association (IPA)