Private NAV REITs Regain Momentum Amid Public Market Turbulence

After a slow 2024, capital is flowing once again into private NAV REITs, led by a new wave of top-performing vintages.

Jordan B.
May 06, 2025

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Good morning. After a slow 2024, capital is flowing once again into private NAV REITs, led by a new wave of top-performing vintages. Plus, Amazon has made its first New York City office acquisition since 2020.

Today's issue is sponsored by InvestNext—don’t waste another minute on manual investment management.

Market Snapshot

S&P 500

GSPC

5,650.38

Pct Chg:
-0.64%

FTSE NAREIT

FNER

770.53

Pct Chg:
+0.11%

10Y Treasury

TNX

4.361%

Pct Chg:
+0.018

SOFR

30-DAY AVERAGE

4.32%

Pct Chg:
-0.00

*Data as of 05/5/2025 market close.

reit revival

Private Placement REITs Begin to Regain Momentum in Early 2025

Capital is flowing back into private REITs as newer NAV vintages outperform in a choppy public market.

Private REITs edge ahead: While the Stanger NAV REIT Total Return Index posted a 1.2% gain in Q1, it slightly lagged public REITs’ 1.6% return—before public markets hit turbulence in April’s “Liberation Day” event. The fallout dragged public REIT indices to -2.1% YTD, giving private REITs a relative boost amid investor uncertainty.

Top performers: Cohen & Steers Income Opportunities REIT led the pack in Q1 with a 3.6% return. PGIM Private Real Estate Fund continued to outperform on a one-year basis. FS Credit Real Estate Income Trust remained the three-year leader, while BREIT secured the five-year top spot with an 11% annualized return.

AltsWire

Liquidity, not luck: Private NAV REITs are attracting fresh capital as newer vintages outperform their rate-sensitive peers. Since early 2022, they’ve weathered $52 billion in redemptions by leaning on liquidity reserves, asset sales, and smart positioning—while BDCs have surged with $67 billion in new fundraising.

Not all REITs are rebounding: The Stanger Lifecycle Index dropped 7.9% in Q1 and 6.7% year-over-year, underscoring uneven recovery across the sector. However, niche players like Strategic Storage Trust VI, Procaccianti Hotel REIT, and Lightstone Value Plus REIT V showed standout returns in their respective categories.

➥ THE TAKEAWAY

Bottom line: Private placement NAV REITs are regaining their footing by staying nimble in a rate-sensitive market. Newer vintages are quietly outperforming—and may be setting the tone for what's next in private alts.

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✍️ Editor’s Picks

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Capital push: Harwood is teaming with Newmark to recapitalize its Uptown Dallas district amid Y’all Street’s rapid rise.
Fund expert: Current tariff policies could chill non-US investment into American real estate, potentially raising the cost of capital and impacting fundraising strategies.
Broker battle: NY real estate groups are suing to block a law requiring landlords to pay broker fees, arguing it will raise rents and disrupt long-standing leasing practices.
Equity move: Bill Ackman's Pershing Square is investing $900 million into Howard Hughes Corp., boosting its stake to 46.9% in a move to transform the real estate firm into a Buffett-style diversified holding company.
Park closure: Six Flags will shut down its Maryland theme park after the 2025 season and market the 500-acre site for redevelopment.
Sales slump: Florida home prices saw their sharpest drop in over a decade, as high insurance costs, mortgage rates, and condo fees strain affordability.

🏘️ MULTIFAMILY

Vacancy dip: Multifamily rents rose 0.9% YoY in Q125 as net absorption hit a 25-year high, pushing vacancy down to 4.8% amid slowing new deliveries.
Development delays: Trump’s 25% tariffs on key building materials may slow Texas multifamily construction, raising costs and potentially halting rent declines.
Housing hack: Developers are creatively converting underused homes into small apartments, bypassing traditional zoning limits to add affordable housing.
Price gap: Multifamily projects in California cost twice as much as in Texas, driven by longer timelines and steep development fees.
Unmet demand: Austin leads the US in affordable housing construction, but despite a booming pipeline and strong policy support, it still falls short of serving its lowest-income residents.

🏭 Industrial

Facility upgrade: Kimberly-Clark will invest $2B to expand US manufacturing with major projects in Ohio and South Carolina, creating over 900 jobs in automation and advanced production.
Tenant trends: Single-tenant industrial sales dropped sharply QoQ in early 2025, while multi-tenant assets showed stronger YoY gains and investor resilience.
Tech bet: Big Tech is doubling down on data center investments, with Microsoft, Amazon, Google, and Meta all signaling rising capital spending to meet soaring AI demand.

🏬 RETAIL

Mall makeover: Sterling Organization has listed Golf Mill Town Center for sale after securing approvals for a $440M redevelopment, offering a new buyer a shovel-ready, mixed-use opportunity in suburban Chicago.
Foot traffic: Retail sales climbed 4.2% YoY in March 2025, buoyed by tax refunds and early shopping ahead of tariff hikes.
Flat growth: Wayfair’s Q1 revenue held steady at $2.7B, but its customer base shrank 5.4% as it faces tariff pressures and slower home goods demand.

🏢 OFFICE

Amazon acquisition: Amazon has purchased the 600 KSF 522 Fifth Avenue office tower from RFR Realty, adding to its growing Manhattan footprint amid a broader RTO push.
Tenant exit: Temple University plans to vacate its 130 KSF lease at 1515 Market in Philadelphia ahead of schedule, which could push the troubled office tower’s occupancy below 50%.
Tech takeover: NVIDIA has acquired the 251 KSF Santa Clara Commerce Park from Blackstone for $123M, further expanding its AI-driven footprint.

🏨 HOSPITALITY

Record month: MGM Resorts is projecting a record-breaking April for its Las Vegas properties, driven by strong Marriott-partnered bookings and resilient travel demand.
Lot for sale: A fully permitted South Boston site approved for a 72-room hotel is now on the market for $6.5M.

📈 CHART OF THE DAY

Multifamily construction permits in the US fell to 12.4 units per 10,000 people, down 27% from the pandemic boom and 5.5% below pre-pandemic norms. The slowdown reflects high interest rates and weaker rent growth, though Sun Belt metros like Austin remain construction hotspots.