Starwood REIT Withdrawal Requests Exceed Monthly Limit in November

According to Barron’s on December 5, another big nontraded REIT, Starwood Real Estate Income Trust, is limiting investor redemptions.   

Last week we reported that Blackstone REIT (BREIT) has limited redemptions after an influx of redemption requests, and now Starwood is apparently halting redemptions after investor withdrawal requests exceeded the REIT’s monthly limit in November.  

Starwood Real Estate Income Trust (SREIT), the second largest non-traded REIT, reportedly invests in stabilized real estate across the United States and Europe. The REIT allows for monthly redemptions of 2% of net asset value and 5% of NAV in a calendar quarter. 

According to Barron’s, the REIT said in a letter to shareholders that it received repurchase requests equal to 3.2% of NAV in November 2022 and it fulfilled 63% of investor redemption requests. The REIT noted that any requests that weren’t filled will have to be made again in December. 

The Trouble with Non-Traded REITs 

Non-traded REITs are complex and high-risk investments for several reasons. First, the investment itself is unsuitably risky because it is dependent on the overall health of specific sectors of the economy.      

Non-traded REITs are often less regulated than other types of investments (i.e., mutual funds, stocks, etc.) and generally pay a higher sales commissions and fees than these other products.   Further, non-traded REITs are generally illiquid, severely limiting the investor’s ability to access funds should the need arise.      

To learn more about investing in non-traded REITs, please see:   

Did your Financial Advisor Recommend Investing in Non-Traded REITs?  and Starwood REIT – Investigating Potential Claims 

If you suffered losses investing in Starwood REIT you may be able to recover your losses through FINRA arbitration. Please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.     

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 

The firm represents investors in FINRA arbitration claims throughout the country.  For more information on the firm, visit https://www.whitesecuritieslaw.com.