Securitized 1031 exchange offerings raised just shy of $3.2 billion in 2020, down from last year’s total of nearly $3.5 billion, according to the year-end market report released by Mountain Dell Consulting, a market research and analytics firm focused on the securitized 1031 exchange marketplace.
Mountain Dell noted that while the 2020 equity raise topped $3.2 billion, there was an additional $250 million that was not reported, but flattened the year-over-year total when such outside capital raising activities are considered.
The year was off to a roaring start with more than $1 billion raised during the first quarter. In the second quarter, during the early months of the coronavirus pandemic, the fundraising took a significant dip to $422 million. The third and fourth quarters ramped back up to $739 million and $990 million raised, respectively.
Mountain Dell indicated that if current trends continue, 1031 exchanges could reach a record-breaking $4 billion by year-end 2021.