X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Private REIT acquisitions are on the rise. Investors are showing increasing interest in acquiring private REITs, which have a variety of real estate holdings. These transactions are very different from standard real estate deals, but they also have significant benefits.

“If real estate investors want to include in their potential acquisition lists the expanding amount of real estate assets held by private REITs in the U.S., they need to be familiar with the ins and outs of acquiring a private REIT, which is a very different transaction from a traditional real estate purchase and sale,” Ben Fackler, a partner at Allen Matkins, tells GlobeSt.com. “And for both buyers and sellers it’s important to understand those key transactional differences in advance, in order to optimize the acquisition process and reduce potential frictions and busted deals.”

Private REITs are particularly popular in a low-yield environment. “Private REITs have long been preferred tax-advantaged yield vehicles, and have increased in popularity as an asset class in the low-yield environment we have found ourselves in since the global financial crisis,” Max Brunner, senior counsel at Allen Matkins, tells GlobeSt.com. “Adding fuel to the fire, in December 2015 Congress passed the Protecting Americans from Tax Hikes Act, which has channeled an increased amount of foreign investment in U.S. real estate into private REITs.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.