Morgan Stanley Smith Barney (NYSE: MS) is planning to launch a non-traded real estate investment trust called North Haven Net REIT, with a focus on high quality commercial real estate assets. While senior housing assets are not the primary objective, the REIT may consider investing in this and other sectors such as net-leased hotels, residential, and infrastructure.
The investment areas will be structured through net-leases, emphasizing income-to-rent coverage ratios and sustainable business economics. Other institutional investment heavyweights, including BGO and J.P. Morgan, have also entered the non-traded REIT market.
The fund will primarily target high quality, credit-worthy tenants with resilient businesses and quality real estate properties. Managed by MSREF Real Estate Advisor Inc, a subsidiary of Morgan Stanley, the REIT will be operated through Morgan Stanley Real Estate Investing, which has acquired over $200 billion in real estate assets across 39 countries as of June 2023.
