Are You a Starwood REIT Investor? 

As This Non-Traded Real Estate Investment Trust Limits Redemptions Again, Concerns Over Losses Grow 

If you are an investor who suffered losses in Starwood REIT (SREIT), which was an investment sold to you by a financial advisor, contact Shepherd Smith Edwards and Kantas Starwood REIT Recovery Attorneys (investorlawyers.com). This non-traded real estate investment trust (non-traded REIT) has been under scrutiny for some time, and concerns of investor losses have only grown. In October 2025, SREIT once again limited investor redemptions. That is because requests went beyond its .05% monthly cap. Because of this, investors only received around 4% of what they wanted on a pro rata basis.

Sponsored by Starwood Capital Group, Starwood REIT concentrates on income-producing residential and commercial real estate. At one point, SREIT was one of the largest interval non-traded real estate investment trusts and held $9B in assets. However, rising interest rates went on to impact residential property valuations. This caused an increase in investor redemption requests that Starwood REIT has struggled to fulfill. In 2024, this non-traded REIT purportedly redeemed only 30% – 55% of redemption requests made by investors. This included, at one point, fulfilling less than $500M of withdrawal requests that were at $1.3B.

This latest suspension of Starwood REIT investor redemptions reportedly came along with a drop in the alternative investment’s total net asset value to about $8.42B as of October 31. This is a 1.03% decline from the end of September. SREIT’s NAV/ share price across all of its share classes saw a drop of about .78% – 79%.

This non-traded REIT continues to experience liquidity issues. It appears that there are Starwood REIT investors who may be waiting months or even years to get their money back.

Also in October 2025,  MacKenzie Realty Capital made yet another tender offer to acquire SREIT shares–its third in two years–at a discount.

What Should You Do If You Suffered Losses in Starwood REIT?

Non-traded REITs tend to be risky and illiquid. They charge high commissions and fees. Many of the investors we represent were unsuitably recommended this alternative investment by a financial advisor. SREIT should not be sold to retail investors.

Shepherd Smith Edwards and Kantas Starwood REIT Recovery Attorneys can help you explore whether you have grounds for a legal claim for financial recovery against your financial advisor and their broker-dealer of record. We represent non-traded REIT investors in arbitration, litigation, and mediation. We have the skills, resources, and experience to take on the most complex securities law claims and maximize a client’s chances for full financial recovery.

Call (800) 259-9010 or fill out this online contact form to schedule your free case consultation with one of our seasoned Starwood REIT recovery attorneys.