Starwood REIT – Investigating Potential Claims

Starwood Real Estate Income Trust, Inc. Shareholders may have Claims

The White Law Group is investigating potential claims involving Starwood REIT and the liability that brokerage firms may have for improperly recommending the high-risk non-traded REIT to investors.

Starwood Real Estate Income Trust, Inc, a perpetual-life monthly NAV REIT sponsored by Starwood Capital Group that invests in commercial real estate and debt secured by commercial real estate, including branded, select service resorts.

Like many other REITS, Starwood REIT  was reportedly impacted by Covid-19, and showed a decline in NAV in March 31, 2020, when the “NAV per share decreased by 2.2 percent compared to our February 29, 2020 NAV per share,” according to filings with the SEC.

Now the REIT has reportedly registered a $5 billion follow-on offering with $4 billion of Class D, Class I, Class S and Class T shares of its common stock and $1 billion in distribution reinvestment plan shares.

The new shares will reportedly be sold at the current net asset value per share, plus applicable selling commissions and dealer manager fees.

Class T shares, available through brokerage and transactional-based accounts, currently priced to the public at $21.99 each, include a 3 percent maximum selling commission, a 0.5 percent dealer manager fee, and an annual 0.85 percent stockholder servicing fee. The stockholder servicing fee for Class T shares consists of an annual 0.65 percent advisor stockholder servicing fee and a 0.20 percent annual dealer stockholder servicing fee.

Filing a Complaint against your Brokerage Firm

Non-traded REITS are considerably more complex than traditional investments and usually involve a high degree of risk. Unfortunately many investors were unaware of the risks and liquidity problems associated with non-traded REITs, when they were sold the investments. They also may come with high fees and commissions. 

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.

If a broker dealer fails to adequately disclose risks or make unsuitable investment recommendations, it can be held liable for investment losses.

If you are concerned about your investment in Starwood REIT, the securities attorneys at The White Law Group may be able to help you.  Please call The White Law Group at 1-888-637-5510 for a free consultation with an experienced securities attorney.

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 Franklin, TN.

For more information on The White Law Group and its representation of investors, please visit our website at www.whitesecuritieslaw.com