Starwood REIT Shakes Up Executive Management

Starwood Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by Starwood Capital Group, announced the company’s board of directors appointed Sean Harris, the current president since January 2021, to serve as the chief executive officer and as a member of their board of directors.

The second-largest nontraded REIT with $15 billion of net assets says Harris will take over as chief executive officer from John McCarthy, who has served as CEO since the inception of the REIT in November 2017.

McCarthy will continue to serve as one of the company’s directors and has been appointed to serve as vice chairman of the board.

Harris, who will continue as president of SREIT, has also been appointed to serve as a member of the board, replacing Christopher D. Graham, who has also been relieved as chief investment officer. Graham will, however, continue as head of acquisitions for the Americas.

As The DI Wire previously reported in December 2022, SREIT limited redemptions as investor withdrawal requests surpassed November’s monthly limit. In a letter to financial advisors that was first reported by Barron’s, the REIT said it received repurchase requests equal to 3.2% of NAV in November. Based on the 2% monthly limit, it fulfilled 63% of investor redemption requests. Redemptions requests have continued to exceed the monthly and quarterly limits.

In April 2023, SREIT provided an update on its portfolio that included a lower aggregate monthly net asset value and lower per share NAV as of March 31, 2023.

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.

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