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BT Bloomington Student Housing DST Lawsuit | Investor Losses Investigation

BT Bloomington Student Housing DST: $1 per Share featured by top securities fraud attorneys, The White Law Group

BT Bloomington Student Housing DST: $1 Per Share — Featured by top securities fraud attorneys, The White Law Group

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended BT Bloomington Student Housing DST to investors. Reports indicate that investors may be facing steep losses, with secondary market pricing as low as $1.00 per share.

If you suffered losses in BT Bloomington Student Housing DST, you may have recovery options through FINRA arbitration claims against your financial advisor or brokerage firm.

What is BT Bloomington Student Housing DST?

BT Bloomington Student Housing DST is a Delaware Statutory Trust (DST) investment sponsored by Baker Tilly US LLP. According to SEC filings, the sponsor raised approximately $26.5 million for the offering, known as Quarters at Bloomington.

The property includes a five-building, 477-bed student housing community near Indiana University Bloomington. Completed in 2018, the development offers studio through four-bedroom apartments within walking distance of campus amenities.

While marketed as a stable, tax-advantaged real estate investment, the recent pricing suggests that many investors may have incurred substantial losses.

Secondary Market Pricing: $1.00 Per Share

According to Lodas Markets, a secondary marketplace for private placements and non-traded investments, shares of BT Bloomington Student Housing DST have recently been listed at just $1.00 per share.

This represents a dramatic decline from the original offering price and underscores the risks associated with investing in illiquid private placements like DSTs.

Risks of BT Bloomington Student Housing DST

While DSTs may offer tax advantages for investors completing Section 1031 exchanges, they are complex and often unsuitable for many investors. Key risks include:

  • Concentration Risk: Investment tied to one property, limiting diversification.
  • Tenant & Lease Risk: Vacancies or defaults may reduce income.
  • Lack of Control: Investors cannot make management or operational decisions.
  • Illiquidity: Resale opportunities are extremely limited, as evidenced by current secondary pricing of $1.00 per share.

Broker Due Diligence & Regulation Best Interest

Broker-dealers recommending DSTs must comply with Regulation Best Interest (Reg BI) and perform adequate due diligence. If your advisor failed to properly evaluate the risks—or recommended this investment without considering your financial circumstances—you may be able to recover losses through FINRA arbitration.

Class Action vs. FINRA Arbitration

  • Class actions may be effective for smaller claims that are shared among many investors.
  • Individual FINRA arbitration is often preferable for larger losses (e.g., $100,000+), as investors maintain more control and cases are tailored to individual facts.

Our attorneys can help you evaluate the best course of action for your specific case.

Free Consultation with a Securities Fraud Attorney

The White Law Group has represented thousands of investors in claims against brokerage firms for improper investment recommendations, including DSTs and other private placements.

If you are concerned about your investment in BT Bloomington Student Housing DST, contact the securities attorneys at The White Law Group at 888-637-5510 for a free, no-obligation consultation.

We represent investors nationwide from offices in Chicago, Illinois and Seattle, Washington.

FAQs About BT Bloomington Student Housing DST Lawsuits

1. Why is BT Bloomington Student Housing DST trading at $1 per share?
The steep decline likely reflects the illiquidity of DSTs, potential management challenges, or declining property value. Secondary market pricing often shows the true risks of these investments.

2. Can I sue my financial advisor for recommending BT Bloomington Student Housing DST?
Yes. If your broker unsuitably recommended this DST or failed to disclose its risks, you may be able to file a FINRA arbitration claim to recover your losses.

3. Are DSTs always risky investments?
DSTs may be appropriate for certain accredited investors but carry significant risks, including illiquidity, lack of control, and tenant-related risks. These factors make them unsuitable for many conservative investors or retirees.

 

 

Last modified: August 22, 2025