Did You Sustain Losses In Starwood Real Estate Income Trust?
You May Have Grounds For An Investor Lawsuit Against Your Broker-Dealer
Shepherd Smith Edwards and Kantas Starwood REIT Loss Law Firm (investorlawyers.com) is working with investors who may have been unsuitably sold the Starwood Real Estate Income Trust (SREIT) by a financial advisor. Once again, MacKenzie Realty Capital has launched a tender offer to buy up to 150,000 of Class S shares of Starwood REIT for $15.30/share. That is a 30% reduction to Starwood’s most recent estimated NAV as of Nov 30, 2024, of $21.84/share.
Mackenzie’s previous tender offer last year, which was to buy 700,000 shares of Class S common stock from Starwood, was priced at $17.50/share. It contends that only 30% to 55% of requests to the non-traded REIT were redeemed over the last year. Shareholders purportedly have to resubmit requests every month and only part of their investment is returned.
At one point, SREIT’s total indebtedness was believed to be as high as $15B. In early 2024, it received $1.3B in withdrawal requests but fulfilled under $500M of them.
One of the largest interval non-traded REITs with $9B in assets, Starwood focuses on residential properties that have high leverage. While for a time this led to substantial NAV growth, rising interest rates allegedly harmed residential property valuations, which caused an increase in investor redemption requests.
Contact Our Starwood REIT Loss Law Firm Today
Like most other non-traded real estate investment trusts, Starwood REIT is a high-risk complex investment that relies heavily on a certain sector of the economy to do well. Because non-traded REITs pay higher sales commissions and fees, these illiquid investments are popular with financial advisors drawn to them in part because of what they can earn for selling them to customers.
There is growing concern that brokerage firms not only unsuitably sold Starwood Non-traded REIT to many investors, but also they never fully apprised, perhaps even misled them about the risks.
To determine whether you have grounds for a legal claim, Shepherd Smith Edwards and Kantas can assess the cause of your losses during your free, initial case assessment with us. If we decide to work together, your claim will have to be filed in Financial Industry Regulatory Authority (FINRA) arbitration. We represent non-traded REIT investors whose brokers made unsuitable investment recommendations, failed to fully notify customers of the risks, violated clients’ best interests, concentrated investor accounts, made unauthorized trades, or some other type of financial advisor misconduct or negligence.
Unfortunately, many non-traded REIT investors often do not fully understand the scope of their losses or what caused them until years after their decision to invest. With over a century’s worth of combined experience in securities law and the securities industry, our non-traded real estate investment fraud attorneys can help you determine whether you should sue your financial advisor for damages. Because we work on a contingency basis, you will only pay us for legal fees if we obtain your financial recovery, which is where the funds would come from rather than directly out of your own pocket.
Contact Our Starwood REIT Loss Law Firm Today:
Call our Starwood REIT Loss Law Firm today at (800) 259-9010 or fill out this form.