DTCC Connection

Nov 01, 2010 • DTCC Connection

AIP Service Processes First Non-Traded REIT Transactions

by Richard Marulanda


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A Closer Look: Non-Traded REITs

Grubb & Ellis has completed system testing and begun processing transactions on DTCC’s Alternative Investment Products (AIP) service for its publicly registered, non-traded real estate investment trust (REIT), Grubb & Ellis Healthcare REIT II, Inc. Grubb & Ellis worked closely with DTCC to prepare and test the system, and is the first non-traded REIT sponsor to utilize the AIP service.


The AIP service links global market participants, including broker/dealers, fund managers, administrators and custodians, providing an end-to-end processing solution for alternative investments such as hedge funds, funds of funds, private equity, non-traded REITs and limited partnerships.


Automation and transparency

Traditionally, alternative investments have been handled through hard copy, fax, email, phone calls and spreadsheets. This lack of automation and centralization prolongs the transaction process, making these methods inefficient and expensive. Leveraging DTCC’s infrastructure, the AIP service streamlines, automates and centralizes all the processes related to trade order initiation, money settlement and post-trade reporting, bringing significant operational efficiencies and transparency to the alternative investments community, while facilitating market growth.


“We are very pleased to have Grubb & Ellis on board as our first non-traded REIT sponsor, and we look forward to bringing additional partners onto the platform,” said Ann Bergin, DTCC managing director and general manager, Wealth Management Services. “As today’s investors continue to look for new ways to diversify their investment portfolios, our AIP service has become an attractive solution for accessing the non-traded REIT market, making it easier for REITs to standardize communication among their financial advisor partners and better serve investors.”


‘Revolutionary’

“As a leader in the non-traded REIT industry, Grubb & Ellis is committed to adopting the best practices and finest available technology to benefit our investors, their advisors and our broker/ dealer partners,” said Tom D’Arcy, president and CEO of Grubb & Ellis Company. “DTCC’s AIP system is a revolutionary step forward for our industry, and we couldn’t be more pleased to have assisted in its successful testing and being the first non-traded REIT to be rolled-out.”


Currently, close to 35 participants are actively testing DTCC’s AIP service; this includes transfer agents, fund administrators, broker/dealers and product sponsors. The AIP service is offered by National Securities Clearing Corporation, a subsidiary of DTCC. @


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