Starwood REIT Faces $850M in Withdrawals as Values Slide
Liquidity Crisis Forces Asset Sales and Tighter Withdrawal Restrictions Starwood Real Estate Income Trust is grappling with a growing liquidity crisis, as investor withdrawal demands intensify. This situation threatens to destabilize both its operations and investor confidence. The financial strain compelled the nontraded REIT to adopt aggressive asset management strategies. It sold approximately $1.6 billion in real estate holdings between December 2024 and May 2025. Among the notable sales was a $133 million shopping center in West Palm Beach. This move was part of the trust's effort to generate the required cash for pending withdrawal requests, which totaled $850 million as of June 2025. Despite these significant asset sales, liquidity challenges persist in the sector. Although the trust's cash position improved from under $800 million to over $900 million year-over-year, stringent withdrawal restrictions continue. The fund's current net asset value stands at $8.8B, repr...