Investors shut out of recent SREIT redemptions have a new path to liquidity; Realto changes name to LODAS Markets
Overland Park, Kan., Feb. 7, 2023 — LODAS Markets, previously known as Realto, Inc., announced today that the Starwood Real Estate Income Trust (SREIT) fund is now trading on the LODAS marketplace.
SREIT limited investor withdrawals in January 2023 and December 2022. This left many investors in the $15 billion fund 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,” said Brian King, LODAS CEO. “It’s a potential lifeline for those who want liquidity but were locked out of SREIT’s most recent redemption cycles.”
Launched as Realto in November 2021, LODAS operates the first fully automated online marketplace that matches buyers and sellers of alternative and real estate investments. It operates like an exchange where assets such as non-traded real estate investment trusts (REITs), business development corporations (BDCs) and private real estate investments are traded similar to corporate stocks.
LODAS stands for Liquidity On Demand As a Service. The name represents the company’s intent to provide investors of all kinds – from individuals to sponsors, to the world’s largest funds – with liquidity on their terms.
Today, the LODAS marketplace has nearly $1 billion in total buy-side interest and more than 40 funds being traded. All trades are paperless, potentially executed in a day, and settled in as quickly as five days. It’s significantly faster than the multi-week process that’s been the standard.
Investor appetite continues to grow for sources of liquidity across tradable markets. 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.”
About LODAS Markets
LODAS is committed to helping investors find liquidity – when they want it. Our SEC-registered online marketplace for buying and selling alternative and real estate investments operates similar to a traditional public stock exchange. We also integrate our technology with the client portals used by leading investment firms. Despite the merits of LODAS, there’s no guarantee that a market will develop for some securities, and as a result, they may remain illiquid.
LODAS Securities LLC, Member FINRA/SIPC, is a subsidiary of LODAS Markets, Inc.
LODAS Securities, LLC Member FINRA / SIPC - LODAS Securities, LLC is a wholly subsidiary of LODAS Markets, Inc.
The information provided herein does not constitute an offer to sell securities or the solicitation of an offer to buy securities, which can only be made by the applicable offering document filed and registered with the appropriate state and/or federal regulatory agencies and sold by broker dealers authorized to do so. There is no guarantee that a market will develop for some securities, and as a result, they may remain illiquid.