Starwood Capital Group reportedly became the second nontraded real estate investment trust limit withdrawals this week.
The firm notified investors Tuesday that it would restrict the money they could pull from its $14.6 billion real-estate fund, according to published reports. The move comes just days after Blackstone Inc. announced it would limit withdrawals from its $69 billion fund.
The funds normally allows investors to withdraw money each month or quarter, but with limitations. Last week, redemptions from Blackstone and Starwood’s nontraded REITs exceeded those limitations.
The decisions from the two largest nontraded REITs come in response to a surge in redemption requests as individual and institutional investors react to a commercial property sector that is under siege. Rising interest rates, weak demand for office space, soaring borrowing costs and a cooling economy are all depressing yields.
While the rise in redemptions could be short-lived, some pension funds and university endowments have reportedly started pulling money out of real estate funds.
Because these need to sell buildings to raise cash in order to pay back investors, ongoing redemptions could signal significant challenges coming for the real estate market.
The new regional leader brings nearly 25 years of experience as the firm seeks to tap a complex and evolving market.
The latest updates to its recordkeeping platform, including a solution originally developed for one large 20,000-advisor client, take aim at the small to medium-sized business space.
David Lau, founder and CEO of DPL Financial Partners, explains how the RIA boom and product innovation has fueled a slow-burn growth story in annuities.
Crypto investor argues the federal agency's probe, upheld by a federal appeals court, would "strip millions of Americans of meaningful privacy protections."
Meanwhile in Chicago, the wirehouse also lost another $454 million team as a group of defectors moved to Wells Fargo.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.