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How Non-Traded REITs Work

Investors interested in diversifying their investment portfolios with an investment in commercial real estate may choose to purchase shares in a non-traded REIT. Non-traded REITs pool investors’ capital to purchase or finance commercial real estate properties and other real estate-related assets. As equity is raised, non-traded REITs endeavor to build a portfolio consistent with its investment strategy. The non-traded REIT’s management team oversees the portfolio and its day-to-day operations. Rent or mortgage payments are collected from the underlying properties or borrowers and together with proceeds from sales or other realization events can be used to pay monthly distributions1 to investors.


Diversification does not eliminate risk or assure better performance. 1) 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.

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.