Global Investment Manager Oaktree Launches $2B Non-Traded REIT
Following in the footsteps of major investment managers Blackstone Group and Starwood Capital Group, global investor Oaktree Capital has launched a non-traded REIT with plans to invest in office, multifamily and industrial assets.
The firm plans to raise $2B and will acquire real estate assets at a discount by sourcing deals through its joint venture relationships. Oaktree will invest in assets within non-gateway markets in order to obtain the best deals and the most attractive yields, CoStar reports.
Institutional investors Starwood and Blackstone have also launched non-traded REITs as of late. In October, Starwood Capital Group, which has an estimated $55B in assets under management, launched a $5B non-traded REIT focused on acquiring stable, income-oriented commercial real estate assets across the U.S., The DI Wire reports. In September 2016, Blackstone Group, one of the largest real estate owners in the world, launched its first non-traded REIT. Blackstone's first acquisition was the Hyatt Place UC Davis for $32.2M, or approximately $235K per room.
Oaktree Capital currently manages 16 real estate funds and has invested an estimated $4.56B in 150 U.S. properties over the last decade. As of December, it had $100B in assets under management.