Sherwood Group: Navigating Regulatory Shifts to Secure Real Estate Dominance

The U.S. immigration landscape is undergoing seismic changes in 2025, with stricter Green Card regulations, heightened scrutiny of visa petitions, and policies targeting undocumented residents. For real estate investors, these shifts present both risks and opportunities—particularly for firms agile enough to adapt. The Sherwood Group, embroiled in a high-stakes proxy battle with Barnwell Industries, Inc., is proving its strategic resilience and positioning itself to capitalize on this evolving environment. Here's why investors should take notice.

The Proxy Fight: A Test of Shareholder Allegiance

The Sherwood Group's campaign to replace Barnwell's board with its slate of nominees—Brian Henry, Doug Woodrum, Ben Pierson, and Ned L. Sherwood—has garnered 42% of shareholder votes as of May 23, 2025, far outpacing the 15% backing for the incumbent directors. This overwhelming support reflects frustration with Barnwell's stagnant governance and its failure to address a critical “going concern” warning in its financial disclosures.

Despite a Delaware court temporarily barring the Sherwood nominees from the ballot, the group continues to urge shareholders to vote via the Green Card proxy, framing it as a protest against judicial overreach and a demand for transparency. The message is clear: shareholders want accountability and a leadership shift to navigate regulatory headwinds.

Strategic Resilience in a Shifting Regulatory Landscape

While the Sherwood Group's immediate focus is on corporate governance, its actions hint at a broader strategy to align Barnwell's real estate portfolio with emerging immigration policies. Consider the following:

1. Adapting to Immigration-Linked Real Estate Trends
2. The 2025 Green Card reforms, including mandatory medical exams and heightened scrutiny of marriage-based petitions, are reducing foreign investor demand in markets like Miami, where sales have dropped 17% year-over-year.

3. The Sherwood Group's potential control over Barnwell could redirect its real estate focus toward targeted employment areas (TEAs) eligible for EB-5 investments, which now require $800,000 stakes. Such projects often involve affordable housing or infrastructure, sectors less vulnerable to immigration policy volatility.

4. Capitalizing on Policy-Driven Demand Shifts

5. Federal restrictions on FHA loans for non-citizens have slashed foreign buyer competition in high-end markets. This creates a niche for Barnwell to acquire undervalued properties in regions like Florida, where rental prices have fallen 16% but demand for long-term, stable housing remains strong.

6. The Sherwood Group's emphasis on shareholder value could prioritize cash-generative assets, such as multifamily housing, which are critical in a market where 7.3 million affordable rental units are lacking nationwide.

7. Mitigating Risk Through Diversification

8. The administration's “gold card” proposal, aimed at attracting wealthy immigrants, could inflate luxury real estate prices in select areas. By balancing its portfolio between affordable and luxury segments, Barnwell under Sherwood's leadership could hedge against overexposure to policy swings.

Why Act Now?

The Sherwood Group's proxy battle is a litmus test for Barnwell's future. A leadership change could unlock:
- Improved capital allocation: Redirecting funds from costly legal battles to high-potential real estate projects.
- Strategic real estate acquisitions: Capitalizing on undervalued assets in regions like Florida, where fear-driven seller sentiment persists.
- Compliance-driven growth: Ensuring Barnwell's projects align with updated visa requirements and EB-5 rules, attracting investors seeking stable pathways to residency.

The Bottom Line

The Sherwood Group's fight for Barnwell's board isn't just a corporate governance showdown—it's a strategic move to position the company as a resilient player in a post-2025 immigration landscape. With shareholder support at record highs and regulatory tailwinds reshaping the real estate market, this is a critical moment to act. Investors who side with the Sherwood slate could secure a stake in a reimagined Barnwell, primed to thrive in an era of policy uncertainty and shifting demand.

Recommendation: Vote Green. Barnwell's real estate future hinges on it—and so does your ROI.