Check out Blackstone Booming Ahead in Nontraded REIT
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Wells Timberland REIT is a public, nontraded REIT
that manages over 308,000 acres of commercial timberland in central Georgia and Alabama.
At the time Block committed the fraud, ARCP's chairman was Nicholas Schorsch, who also led AR Capital, the biggest nontraded REIT
sponsor in the U.S.
Also last fall, RCS Capital named Larry Roth CEO of Realty Capital Securities (its nontraded REIT
broker-dealer and wholesale arm), pulling him away from the AIG-owned Advisor Group, which includes about 6,000 independent broker-dealers.
Wells REIT II is the only public, nontraded REIT
currently holding credit ratings from S&P and Moody's.
Blackstone Group started selling its first nontraded REIT
several months ago, and the product had raised over $886 million as of May 31, according to Robert A.
"This is unfortunate, considering that ARCP had built up a very strong brand and strong relationships with advisors who valued what the company brought to the nontraded REIT
niche," explained Elzweig.
LLC and its nontraded REIT
affiliates completed three additional investments prior to year-end 2008, underscoring its continuing ability to act as an alternative source of capital during all market conditions.
Wells REIT II, with more than 100,000 active investors, is a public, nontraded REIT
focused primarily on Class-A office and industrial properties.
Wells REIT II, a public nontraded REIT
specializing in office properties, now has 77 buildings in 23 states and Washington, D.C., totaling more than $4 billion based on purchase price and covering 18 million square feet.
Private real estate investments faced significant criticism in recent years, as high-profile scandals in the nontraded REIT
industry drew press and regulatory attention.