BT Bloomington Student Housing DST: Investigation

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Baker Tilly Bloomington Student Housing DST in investors.

BT Bloomington Student Housing DST is a private placement Delaware Statutory Trust (DST) investment sponsored by Baker Tilly. Baker Tilly US LLP, a sponsor of tax-advantaged real estate investments, reportedly fully subscribed its first Delaware statutory trust offering, Quarters at Bloomington, after raising $26.5 million from investors. According to the form D, the total offering amount was purportedly $26,485,000.

Quarters at Bloomington is a five-building, 477-bed student housing community located near the Indiana University Bloomington campus. The development consists of studio, one-, two-, three-, and four-bedroom apartments and is within walking distance to campus, restaurants, parks, athletic venues and nightlife. The buildings were completed in 2018.

According to Lodas Markets, a secondary marketplace for private placement and non-traded investments, shares of BT Bloomington Student Housing DST recently sold for just $1.00 per share. This may indicate losses for investors.

BT Bloomington Student Housing DST: Suitable for you?

DSTs offer many benefits however they are not suitable for everyone and come with risks. DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following:

Concentration Risk: The investment is not diversified, focusing solely on a single commercial property.

Lease Risks: If the tenant does not renew, extends, terminates, or defaults on the lease, it could lead to significant revenue loss, adversely affecting the property’s operating results. This could also jeopardize the investors’ ability to benefit from Section 1031 tax deferral.

Lack of Control: Investors have no voting rights regarding the management or operation of the Trust or decisions related to selling the property.

Illiquidity: The investment is illiquid, meaning it may be difficult to sell or exit the investment quickly.

Regulation Best Interest and Broker Due Diligence

Under the “Regulation best interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment.  If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.

If your advisor unsuitably recommended a 1031 DST offering and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

Class Action vs. Individual FINRA Arbitration Lawsuit

You may wonder whether a large class action lawsuit is a better litigation option  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 a Securities Attorney

FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country. Visit the firm’s homepage to learn more about the firm’s representation of investors.

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

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