Barry Sternlicht’s nontraded real estate investment trust, facing redemption calls from its shareholders in a tough commercial property investment market, has shaken up its executive management team starting at the top.
Starwood Real Estate Income Trust this week replaced John McCarthy, who had served as CEO since the REIT launched in November 2017, with Sean Harris, according to a filing with the U.S. Securities & Exchange Commission. Harris, who has served as president of Starwood REIT since January 2021, will continue in that capacity as well and has been added to its board of directors.
Harris took the board position that had been filled by Christopher Graham. Starwood said Graham also no longer will serve as the REIT’s chief investment officer but will retain the title of head of acquisitions for the Americas.
As for now-former CEO McCarthy, he will continue to serve on the board as vice chairman, Starwood REIT said in the Tuesday filing. Sternlicht is chairman of the Miami Beach, Florida-based company.
No reasons for the changes were given in the SEC filing, but the moves come as private REITs including Starwood’s and Blackstone Real Estate Income Trust contend with high numbers of requests to redeem their shares in the weakening commercial property market.
Starwood REIT reported that March share repurchase requests totaled $450 million, or 3.3% of its net asset value. Starwood, like other nontraded REITs, caps monthly redemptions at 2% of NAV. Starwood reported that it has not met 100% of redemption requests since November 2022.
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