BR Westerly DST: Securities Investigation

BR Westerly DST: Investigating Claims

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended BR Westerly DST to investors. Our firm may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Bluerock Value Exchange (BVEX), a subsidiary of Bluerock Real Estate, is a national sponsor of syndicated 1031-exchange offerings. The company filed a form D to raise capital from investors for the offering BR Westerly DST. The total offering amount was purportedly $38,053,704.

According to its website, The Westerly at Forge Park  “represents an opportunity to invest in a newly constructed, Class A, mid-rise, apartment community located in a top tier Boston suburb.”

DSTs may not be appropriate for all investors, as they come with a few disadvantages, compared to owning a property outright. 1031 DSTs typically cannot raise new capital, leaving investors holding the bag if expensive repairs are needed. The investors also have no control over the property, or the ability to make decisions about the property. While the sponsor may welcome feedback from the investor, they don’t usually allow any actions to be taken by said investor.

Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer when the investor is ready to sell.

Investigating Potential Claims

Despite the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes and unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.

Class Action vs. Individual FINRA Arbitration Lawsuit 

You may wonder whether a large class action lawsuit is a better litigation option for you than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually. 

Free Consultation with Securities Attorneys

If you are concerned about your investment in BR Westerly DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.