Starwood Capital Group, a global real estate investment manager, plans to launch a $5 billion non-traded REIT named Starwood Real Estate Income Trust Inc. The proposed initial public offering is comprised of up to $4 billion of Class D, Class I, Class S and Class T shares of its common stock and $1 billion in distribution reinvestment plan shares.
Starwood REIT will focus on acquiring stabilized, income-oriented commercial real estate in both primary and secondary markets in the United States, with an ability to also invest in Europe. Shares will be offered on a continuous basis at a price generally equal to the net asset value per share of each class of common stock, updated monthly. The REIT will be externally managed by Starwood REIT Advisors, an affiliate of Starwood Capital.
Class T shares, available through brokerage and transactional-based accounts, are initially priced at $20.70 each, and include a 3 percent maximum selling commission, a 0.5 percent dealer manager fee, and an annual 0.85 percent stockholder servicing fee. The stockholder servicing fee for Class T shares consists of an annual 0.65 percent advisor stockholder servicing fee and a 0.20 percent annual dealer stockholder servicing fee.
Class S shares, available through brokerage and transactional-based accounts, are initially priced at $20.70 each, and include a 3.5 percent maximum selling commission and an annual 0.85 percent stockholder servicing fee.
Class D shares, available through fee-based programs, are initially priced at $20.00 each and include an annual 0.25 percent stockholder servicing fee.
Class I shares, available through fee based programs and to institutional investors, are initially priced at $20.00 each.
The minimum initial investment for Class T, Class S, and Class D shares is $5,000 and the minimum for Class I shares is $1 million.
For Class T, Class S and Class D shares, the stockholder servicing fee will cease being paid when total upfront selling commissions, dealer manager fees and stockholder servicing fees would exceed 8.75 percent.
Prior to the end of the escrow period, Starwood Capital or one of its affiliates plan to invest invest at least $5 million in Class I shares.
Founded in 1991, Starwood Capital is a private real estate investment firm with $55 billion in assets under management as of May 31, 2017. It has sponsored 15 private opportunistic real estate funds, 15 co-investment entities and eight public companies since its inception.