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.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
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.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
