Education Center

Education
Center

Non-Traded Real Estate Investment Trusts (REITs)

A REIT provides for the ability to pool money from many investors to create and acquire a diversified, professionally-managed portfolio of commercial real estate investments. The U.S. Congress created REITs in 1960 to make investments in large scale, income producing real estate accessible to retail investors. Investors in a professionally managed REIT may benefit from greater diversification through a portfolio of properties, rather than a single asset.

REITs are legally required to pay 90% of taxable income as dividends and, therefore, have the potential to provide attractive streams of income through cash distributions* to investors.

Potential Benefits of Investing in Commercial Real Estate through Non-Traded REITs

Given the historic uncertainty of the financial markets, we believe adding an investment in commercial real estate to a traditional investment portfolio may provide investors with a number of potential benefits including:

  • Capital preservation
  • Reduced portfolio volatility
  • An alternative source of cash flow
  • Lower portfolio risk through reducing the correlation across major asset classes
  • Potential hedge against inflation
  • Professional management

*There is no guarantee of distributions. Distributions may be paid from sources other than income generated from the REIT’s investments. Investing in non-traded REITs involves various risks including but not limited to loss of principal, limited liquidity and lack of price transparency. Diversification does not eliminate risk or assure better performance.

This website is neither an offer to sell nor a solicitation of an offer to purchase any NorthStar investment Program, NorthStar Investment Programs are only offered by means of a prospectus. This material must be read in conjunction with a prospectus in order to understand fully all the implications and risks of an offering of securities to which it relates. Neither the Securities and Exchange Commission nor any state securities regulator has passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful. Consult the prospectus for suitability standards in your state. Securities offered through NorthStar Securities, LLC, member FINRA/SIPC. NorthStar Securities, LLC is doing business as NorthStar BD Securities, LLC (DE) in the following states: FL, GA, TX and WA.