LODAS Markets, previously known as Realto Inc., which is the operator of a web-based marketplace for the secondary trading of illiquid real estate and alternative investments, announced that Starwood Real Estate Income Trust is now trading on the LODAS marketplace.
As The DI Wire reported, the Starwood-sponsored non-traded REIT limited investor withdrawals in January 2023 and December 2022 which LODAS claims left many investors in the $15 billion REIT scrambling for a way to convert their assets into cash.
“The LODAS marketplace currently has hundreds of millions of dollars of institutional buy-side interest in SREIT, with some willing to buy at the current NAV,” Brian King, LODAS chief executive officer, said. “It’s a potential lifeline for those who want liquidity but were locked out of SREIT’s most recent redemption cycles.”
LODAS marketplace has nearly $1 billion in total buy-side interest and more than 40 funds being traded. The company says all trades are paperless, potentially executed in a day, and settled in as quickly as five days.
LODAS says that fundraising for non-traded REITs and BDCs reached $57 billion in 2022, which is more than triple the 2020 amount.
“Our marketplace gives investors the flexibility to buy when they want to buy and to sell when they want to sell – even if their assets are traditionally illiquid,” said King. “The LODAS name conveys our focus for the future, which is connecting sponsors of the largest global funds to the same liquidity on demand that we’ve been providing to individual investors for more than a year.”
Starwood Real Estate Income Trust invests in stabilized real estate across the United States and Europe. Its initial $5 billion offering launched in December 2017 and raised approximately $3.9 billion from investors before closing in June 2021. The first follow-on offering, comprised of $10 billion in shares, launched immediately afterward and raised approximately $8 billion. The second follow-on offering, which is currently offering up to $18 billion in shares of common stock, launched in August 2022 and has raised approximately $516.6 million in the primary offering to-date. As of Sept. 30, 2022, the REIT’s NAV was approximately $14.6 billion.