Over $10 billion has poured into non-traded real estate investment trusts (REITs) in 2019 by individual investors seeking higher returns in the commercial real estate sector. With other investment securities producing low yields, small investors – the minimum investment is $2,500 – are seeing dividend returns of over 5% a year with nontraded REITs.
Steve DeAngelis, head of distribution at FS Investments commented on the often measly returns generated by other securities noting, “That’s tough when investors need to meet their retirement needs…education needs and healthcare needs.”