DWS Group, a German asset management giant, is liquidating one of its nontraded REITs after failing to meet investor redemption requests on and off for years. 

The board at RREEF Property Trust unanimously approved the liquidation of the fund, which owns seven properties, DWS Group announced Friday. The decision comes after RREEF fell far short of its June redemption requests before meeting all of its July obligations.

As part of the liquidation process, RREEF is suspending future share redemptions and the sale of common stock, the fund said in a filing with the Securities and Exchange Commission. The plan still needs shareholder support. 

“A period of heightened redemption activity experienced by the Company and the industry in general and the challenges of attracting new capital led us to a diligent exploration of various strategic alternatives,” Todd Henderson, CEO of the holding company that manages RREEF, said in a statement. That review led to the conclusion that liquidation was the “most attractive path to maximizing shareholder value.”

The fund owned seven properties totaling 1.4M SF at the end of June, according to its second-quarter report filed with the SEC. The portfolio included a 102K SF office in Sterling, Virginia, two West Coast retail properties, two industrial properties in New Jersey and Washington, and two multifamily properties with a combined 444 units. 

The nontraded REIT sold a 96K SF retail plaza in Chula Vista, California, in August. Before that deal, it listed its total assets at $333.6M against $274.8M in liabilities. RREEF lost $483K through operations in the second quarter, up from a $257K loss during the same period a year prior. 

RREEF met all of its July redemption requests but fulfilled only 67.6% of investor requests to pull cash in June. The REIT has failed to meet redemption requests in the past, including for a stint that started in 2024 and lasted until February 2025, when DWS added $15M to the fund. 

DWS said it expects to be able to sell its seven remaining assets within 24 months and has tapped JLL as financial adviser relative to the review of strategic alternatives. 

DWS Group is majority-owned by Deutsche Bank and has roughly $1.1B in assets under management. The publicly traded firm's shares are up about 30% this year. 

There’s been consolidation in both the public and nontraded REIT space across 2026 as investment managers look to close what has been a longstanding gap between public and private valuations. 

In July, Charlotte-based Grubb Properties consolidated several funds into Link Apartments REIT, a managed REIT with more than 5,600 apartments. Along with the rollup of funds, Grubb locked in a $300M construction loan and a $77M mezzanine loan to build a Manhattan multifamily project called 8 Carlisle. 

Los Angeles-based CIM Group, a real estate firm with $32B in owned and managed assets, combined with its public nontraded REIT in June and announced a plan to potentially go public as a combined entity.