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Forbes: Blind pool REITs?
Slatin: Well, blind pool REITs are different than listed non-traded REITs.
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Blind pool hotel REITs have a chance at the pipelines of legacy hotel companies like Hyatt, which is looking to spin off assets.
On the take-a-flier side, Chesapeake Lodging Trust is a new blind-pool hotel REIT with a good line into some Hyatt Hotels and other high-quality dispositions.
In fact, several new REITs, so-called blind pools because they currently own no property, might be able to take advantage of the situation by buying.
In May his REIT bought Chicago's 83-story Aon Center, the third-tallest building in the U.S. Wells' five-year-old investment pool is in the vanguard of a new trend, "private REITs," whose shares aren't traded on exchanges.
REITs traditionally hold a range of real estate including apartments, offices, shopping malls, warehouses, etc. REITs are similar to mutual funds in the sense that they pool investments together, generate capital gains and investment income, and allow investors to invest in a diversified portfolio of assets.
Real estate investment trusts, or REITs, which are traded publicly like stocks, could tap far broader pools of capital to vastly lower the cost of financing renewable energy.
We are hearing lots of talk about blind-pool REITs firms that have already raised capital and that will now move to get approval from investors to form REITs and go into property acquisition mode.
Nontraded REITs also often have higher fees for investors than publicly traded REITs.
As a result, the REITs badly underperformed.
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