MacKenzie Realty Capital Launches Tender Offer to Purchase Class S Shares of Starwood Real Estate Income Trust

Strategic Insights -

MacKenzie Realty Capital, Inc. has announced the launch of a tender offer to purchase up to 150,000 Class S shares of Starwood Real Estate Income Trust, Inc. at $16.25 per share, representing a 22% discount to Starwood's estimated net asset value of $20.76 as of August 31, 2025. The tender offer aims to provide Starwood shareholders with an opportunity to redeem their shares quickly, rather than waiting for years through the company's share redemption program, which has been oversubscribed.

Key Takeaways:

  • MacKenzie Realty Capital is offering to purchase up to 150,000 Class S shares of Starwood Real Estate Income Trust, Inc. at $16.25 per share.
  • The tender offer represents a 22% discount to Starwood's estimated net asset value of $20.76 as of August 31, 2025.
  • The share redemption program of Starwood Real Estate Income Trust, Inc. is oversubscribed, and only redeemed approximately 4% of each stockholder's repurchase requests in June, July, and August 2025.
  • With this tender offer, shareholders can redeem their shares quickly, rather than waiting years through the company's share redemption program.
  • MacKenzie Realty Capital and its affiliates have previously purchased over $3 million in Starwood shares in two tender offers, and have submitted these shares for redemption.
  • The company's adviser, MacKenzie Real Estate Advisers, LP, has acquired another 15,000 shares of MacKenzie, resulting in ownership by the adviser and its affiliate of over 7% of the outstanding shares of common stock of MacKenzie.
  • The company believes in the future of MacKenzie and intends to invest in real property, with focuses on multifamily and boutique class A office properties.
  • MacKenzie Realty Capital has a current portfolio that includes interests in 5 multifamily properties and 8 office properties, plus 1 multifamily development.
  • The company's forward-looking statements may involve risks and uncertainties that could cause actual results to differ significantly from those expressed in any forward-looking statement.

Statistics:

  • Estimated net asset value of Starwood Real Estate Income Trust, Inc. as of August 31, 2025: $20.76
  • Discount offered by MacKenzie Realty Capital: 22%
  • Amount offered by MacKenzie Realty Capital: up to $2.438 million for 150,000 shares
  • Estimated value of 150,000 shares of Starwood Real Estate Income Trust, Inc.: $3.114 million
  • Potential gross profit: $676,500
  • Number of shares owned by MacKenzie Realty Capital and its affiliates submitted for redemption: 6,750
  • Return on investment for shares submitted for redemption: 30% in less than a year (or 18% return on the 2024 purchases)
  • Ownership percentage of MacKenzie Real Estate Advisers, LP, in MacKenzie Realty Capital: over 7%

Sources:

  • MacKenzie Realty Capital press release, October 13, 2025
  • Starwood Real Estate Income Trust, Inc. Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission from time to time.