Updated
Updated · Bisnow · Sep 18
RREEF Property Trust Liquidates $333.6 Million REIT as Redemption Shortfalls Persist
Updated
Updated · Bisnow · Sep 18

RREEF Property Trust Liquidates $333.6 Million REIT as Redemption Shortfalls Persist

1 articles · Updated · Bisnow · Sep 18

Summary

  • RREEF Property Trust’s board approved liquidation of the nontraded REIT, suspended future share redemptions and common-stock sales, and said the plan still requires shareholder approval.
  • June redemption pressure drove the move: the fund met only 67.6% of withdrawal requests, after years of intermittent shortfalls and difficulty raising new capital despite covering all July requests.
  • The REIT held seven properties totaling 1.4 million square feet at the end of June and expects to sell the remaining assets within 24 months, with JLL advising on the process.
  • Before an August sale of a 96,000-square-foot Chula Vista retail plaza, RREEF reported $333.6 million in assets against $274.8 million in liabilities and a second-quarter operating loss of $483,000.
  • The wind-down adds to 2026 consolidation across nontraded REITs, as managers seek exits and restructurings amid a persistent gap between public and private real estate valuations.

Insights

With RREEF liquidating after massive withdrawal demands, will forced asset sales wipe out the remaining value for trapped shareholders?
Could a forced 24-month fire sale of RREEF’s remaining real estate actually hurt investors more than waiting for a market rebound?
As DWS pulls the plug on its property trust, are other nontraded REITs secretly facing the same fatal liquidity crisis?