How do REITs pull off condo sales, PE funds?

WSO - and maybe the REIB kids can help here:

How do REITs, supposedly barred from the business of "trading" real estate, get away with developing condo buildings and selling them out? Vornado's 220 CPS comes to mind.

I'll add another wrinkle. A good number of equity and hybrid REITS also have investment management businesses where they raise funds to buy/sell/lend-on real estate. How are these structured? Who gets the carried interest? How do they still manage to maintain REIT status if such is the case?

Can anyone ELI5?

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Mar 14, 2019