With many of the non-traded REITs ceasing their buy-back programs, dropping in value and no longer making the promised monthly/quarterly distributions, investors who need to liquidate these investments have only the secondary market makers as an option. Non-traded REITs do not trade on any conventional exchange and will only become liquid if the REIT sells out or through reorganization becomes registered and publicly traded.
This recently happened when Inland Western Retail Real Estate, via reverse merger, became Retail Properties of America and is publicly traded. See here for more on Inland Western.
I did a bit of online research today and came up with the following companies who represent themselves as companies who can provide liquidity for non-traded reits and other illiquid securities. Note that I have no experience with any of them and suggest you do some due diligence before entering into any business dealings.
- Central Trade & Transfer
- Lapis Advisers, LP
- Mackenzie Patterson Fuller LP
- Pacific Partnership Group
- REIT Secondary Exchange
If you own non-traded REITs that have dropped in value, you may be able to recover some or all of your losses through FINRA arbitration. Call us at 561 391 1900. We have been helping investors recover stock market losses for over twenty years. Free initial consultation. Nationwide representation.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.