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.
Wells Fargo adds two bank-channel recruits, UBS lands a JPMorgan Chase veteran, and a multi-family office lifts Atlas past $1B
“The state comes down on you in years when you make 40% returns for clients,” said Bill Swayne, the advisor and son of Candace Swayne.
The Independent broker-dealer giant has had “active conversations” with the Claude maker, which is days away from its expected IPO
For Gen X clients entering life after work, answering the financial question isn't enough to solve the entire retirement equation.
Tools from Grantd, Income Lab and Healthspan Wealth aim to keep RIAs involved in clients’ biggest money decisions
Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
