Reitrades Launches a No-Brokers Marketplace for High-Value Properties

Looking for elite buyers and sellers of high-value commercial real estate who might like broker-less direct matching, Reitrades launched a currently invitation-only digital trading platform.

The company claims that it already has more than 1100 users from over 750 real estate investment firms that together have total assets under management of nearly $17 trillion. That would be an average of $22.7 billion AUM each. While right now invitation only, investors and buyers can apply for access.

Transactions can be in any CRE asset class and are supposed to be for properties that are worth at least $10 million. Sellers pay a “platform fee” of 0.1% for each closed transaction. That would be considerably cheaper than a typical broker’s fee, although “optional premium marketing” is available. There is no mention of a buyers’ fees.

“With a target client base that includes private equity firms, family offices, real estate investment trusts (REITs), institutions, asset and investment managers, high net worth individuals and more, the platform requires investors to have at least $50 million in assets under management or have recent transaction history above $10 million,” Reitrades says. Brokers and intermediaries are not allowed. Properties have to be listed exclusively on the platform. Sellers can list or remove properties at will with no minimum periods. Users have to sign NDAs so they cannot pass on information they see on the platform. The company also says sellers can test the market, listing properties for prices they’d like to get and see what buyers might be willing to pay.

“All brokers rely on technology and automated systems to analyze, prepare, and market properties for sale,” founder Artur Miller said in the release. “And most information on a deal comes from the buyer or the seller. The broker simply acquires the property and delivers. So why use a broker at all/?”

Miller claims to have an “automated sales process that connects sellers directly with the largest network of accredited buyers” based on data.

The company’s website says it has such features as due diligence tracking tools, data analytics to follow market trends, automated property notifications based on a user’s stated acquisition criteria, auto-generated marketing materials, standard contracts and documents or the ability to upload your own, broker opinion of values available from Reitrades by request, 3D virtual property tours, and electronic document signing.