The Non-Traded REIT Challenge
Over the past five years SEC registered, publicly offered, non-traded REIT Sponsors and their FINRA broker-dealer representatives have sold in excess of $46 billion non-traded REIT securities to both accredited and non-accredited retail investors.
These securities were sold to investors with the understanding that:
(A) the non-traded REIT stock price would remain constant at $10/share over the seven to ten year holding period;
(B) the annual dividend would remain fixed at between 6% to 8% for the seven to ten year life of the investment;
(C) if necessary, the investor could redeem their shares within the first year at approximately 92.5% of the original share price or at 92.5% of the now current NAV.
With the 2008-2010 capital market collapse and ensuing commercial real estate market precipitous decline, Sponsors have been forced to mark to market their portfolios, reduce NAV stock prices by 10% to 80% (depending on the Sponsor), cut their annual dividend by ten (10%) to fifty (50%) percent and close or significantly pare back their Sponsor redemption programs, collectively reducing liquidity in the non-traded REIT space.
Retail investors are now turning to an under capitalized, uninformed, inefficient, labor intensive secondary market to monetize their investments which can take up to three to six months to sell their shares - if they can find a buyer to purchase their shares at an acceptable price.
These securities were sold to investors with the understanding that:
(A) the non-traded REIT stock price would remain constant at $10/share over the seven to ten year holding period;
(B) the annual dividend would remain fixed at between 6% to 8% for the seven to ten year life of the investment;
(C) if necessary, the investor could redeem their shares within the first year at approximately 92.5% of the original share price or at 92.5% of the now current NAV.
With the 2008-2010 capital market collapse and ensuing commercial real estate market precipitous decline, Sponsors have been forced to mark to market their portfolios, reduce NAV stock prices by 10% to 80% (depending on the Sponsor), cut their annual dividend by ten (10%) to fifty (50%) percent and close or significantly pare back their Sponsor redemption programs, collectively reducing liquidity in the non-traded REIT space.
Retail investors are now turning to an under capitalized, uninformed, inefficient, labor intensive secondary market to monetize their investments which can take up to three to six months to sell their shares - if they can find a buyer to purchase their shares at an acceptable price.
The 1st Liquidity Solution
1st Liquidity provides the non-traded REIT Investor, Broker-Dealer and Sponsor with certainty in purchasing and closing their non-traded REIT security sales transaction.
1st Liquidity was designed to offer non-traded REIT investors liquidity as an alternative to the pared back or closed Sponsor redemption programs, mini-tender vulture offerings, and third party auction based sale or match making sales transaction.
1st Liquidity provides an immediate, transparent, fair market value stock price commitment and date certain closing as a means to facilitate the sales transaction.
1st Liquidity provides a progressive, transparent, valuation documented, systematized process to track, process, and efficiently purchase non-traded REIT security investments.
1st Liquidity’s competitive advantage includes our financial service experience, access to institutional capital, proprietary market research, our broker-dealer relationships and our non-traded REIT direct participation experience.
Our experienced, seasoned team of real estate, financial services and non-traded REIT professionals have relationships with broker-dealer, insurance company, pension fund and endowment capital providers.
We have a combined 125 years in the commercial real estate, financial services and non-traded REIT industries and it is that knowledge, experience and existing relationships built over time that 1st Liquidity brings to bear to capitalize the non-traded REIT secondary market liquidity opportunity.
For further information about our acquisition creiteria, investment strategy, management team, and purchasing documents please contact:
Thomas Powers, President of 1st Liquidity Holdings, LLC - Cohasset, MA - 02025 - www.1stLiquidityHoldings.com
Phone - 781-210-0929 - or email Thom@1stLiquidityHoldings.com
1st Liquidity was designed to offer non-traded REIT investors liquidity as an alternative to the pared back or closed Sponsor redemption programs, mini-tender vulture offerings, and third party auction based sale or match making sales transaction.
1st Liquidity provides an immediate, transparent, fair market value stock price commitment and date certain closing as a means to facilitate the sales transaction.
1st Liquidity provides a progressive, transparent, valuation documented, systematized process to track, process, and efficiently purchase non-traded REIT security investments.
1st Liquidity’s competitive advantage includes our financial service experience, access to institutional capital, proprietary market research, our broker-dealer relationships and our non-traded REIT direct participation experience.
Our experienced, seasoned team of real estate, financial services and non-traded REIT professionals have relationships with broker-dealer, insurance company, pension fund and endowment capital providers.
We have a combined 125 years in the commercial real estate, financial services and non-traded REIT industries and it is that knowledge, experience and existing relationships built over time that 1st Liquidity brings to bear to capitalize the non-traded REIT secondary market liquidity opportunity.
For further information about our acquisition creiteria, investment strategy, management team, and purchasing documents please contact:
Thomas Powers, President of 1st Liquidity Holdings, LLC - Cohasset, MA - 02025 - www.1stLiquidityHoldings.com
Phone - 781-210-0929 - or email Thom@1stLiquidityHoldings.com