Why Secondary Transfers Are Getting More Attention in Private Real Estate

March 30, 2026

Private real estate usually requires LPs to be patient. Investors put money in, the sponsor carries out the business plan, and everyone waits for the final exit.

But investors don’t always have the same timeline.

Sometimes an LP wants liquidity even though the asset is still doing well, cash flow is still coming in, and the sponsor is still following the original plan. That’s why secondary transactions are becoming more important in private real estate.

The basic idea is simple: the asset stays the same, the sponsor stays the same, but the LP interest can be sold to a new accredited buyer.

The secondary market in real estate hit an all-time record of $20 billion in transaction volume in 2025. Goldman Sachs, Blackstone, and Neuberger Berman have each raised dedicated funds.

Yet most of this infrastructure has been built for large institutional transactions. The lower middle market, where many individual accredited investors actually participate, has been largely left out.

LPshares was built to change that. The platform allows limited partners to list shares in private markets at no cost, with full sponsor oversight and no intermediaries.

The results speak for themselves. In June 2025, LPshares helped surface a qualified buyer for an LP exit worth over $1.1 million from The Crescent, a 1.3 million square foot trophy office tower in Dallas, Texas. The seller needed fast capital for a new opportunity, and LPshares surfaced a qualified buyer who offered above the asking price. The entire transaction was completed in fourteen days.

More recently, we closed a secondary tied to Robertson’s Creek in Flower Mound, Texas at approximately 35% below the current investor’s basis. The buyer acquired a cash-flowing position at a meaningful discount, while the seller achieved the liquidity they needed without disrupting the deal or the sponsor.

These are two very different assets in two very different situations, but the outcome was the same: the seller got liquidity, the buyer got access to a real deal, and the sponsor maintained full control. That’s the model working as intended.

Flexibility around ownership is good for sellers, buyers, and sponsors alike. As this part of the market continues to grow, we believe platforms that make secondary transfers simple, transparent, and sponsor approved will play an increasingly important role in how private real estate capital moves.

LPshares is a secondary marketplace for limited partner interests in private real estate and alternative assets.