Texas broker-dealer that sold, marketed REITs is shutting down

Ashford Securities, a Dallas-based broker-dealer that sold and distributed nontraded real estate investment trusts, is shutting down. 

According to its BrokerCheck profile, the Dallas-based Ashford Securities, which opened six-years ago, filed its termination notice with FINRA on Monday.

Carl Steigerwald, an industry veteran that had previously worked at former nontraded REIT powerhouse Carey Financial, was Ashford’s CEO. 

He did not return calls to comment about the firm shutting its doors.

Small, marketing broker-dealers like Ashford typically work hand in glove to distribute to other broker-dealers the alternative investment products created and managed by the investment advisor side of such organizations. REIT advisors, which generate fees for investment management work, historically have been a source of significant revenue in the alternative investment industry.

In the case of Ashford Securities, it ran the nontraded preferred for shares for the listed REITS, Ashford Hospitality Trust Inc., which invests in hotels, and Braemar Hotels and Resorts Inc. Both are closed to new investors, according to the company’s website.

It’s tough for small firms like Ashford Securities to compete in the REIT marketplace against a giant like Blackstone Inc., which entered the mass market alternative investment industry almost a decade ago, noted one senior industry executive.

“It’s harder for those smaller broker-dealers to compete with a firm like Blackstone, particularly with real estate funds,” said the executive, who spoke privately about the matter to InvestmentNews. “With interest rates where they are, some clients have REIT fatigue. It’s an intensely competitive market.”

Selling new, nontraded REITs was difficult for financial advisors last year. According to alternative fund tracker Robert A. Stanger, fundraising in public, nontraded REITs remained relatively flat year-over-year with $5.7 billion raised in 2025 as compared to $6.1 billion in 2024.

Ashford Hospitality Trust in December said its board of directors was reviewing strategic alternatives; this month, the company said that, in order to maintain liquidity, preferred dividends have been suspended.

Braemar Hotels & Resorts last summer said it was exploring a potential sale.

Meanwhile, some advisors say publicly traded REITs, which are often cheaper to manage, are worth reconsidering in 2026 after a weak 2025, according to a recent report in InvestmentNews.

Last year was rough for the S&P 500 real estate sector, as well as the Dow Jones Select REIT index. Both benchmarks finished off just under 1 percentage point compared to a 16% return for the S&P 500.

Nevertheless, wealth managers like Aaron Leak, founder of ECL Private Wealth Management believes REITs are worth another look in 2026, but with “much greater selectivity.”

In his view, last year exposed leverage, poor balance sheets, and business models that relied too heavily on easy capital, while higher quality REITs with durable cash flows held up fairly well with potential for future success.