Government Lease Holdings DST: Investor Alert

Investigating Lawsuits: Government Lease Holdings DST (1031 DST Offering)

The White Law Group is investigating potential securities lawsuits involving broker dealers who may have unsuitably recommended Government Lease Holdings DST to investors.

What is Government Lease Holdings DST?

Government Lease Holdings DST, sponsored by Net Lease Capital Advisors, is purportedly a commercial real estate investment.  Net Lease reportedly filed a form D  in 2022 to raise capital from investors for a private placement Delaware Statutory Trust (DST) investment. The total offering amount was purportedly $153,840,000.

Complex, Illiquid Investments

Investing in private placement Delaware Statutory Trusts (DSTs) carries several risks, including limited liquidity, as these investments are typically long-term and difficult to sell.

While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment. According to the reg D, the sales commissions and fees associated with Government Lease Holdings DST are more than 9% of the offering amount.

There is also the potential for loss of principal due to market volatility or poor performance of the underlying real estate assets. Additionally, DSTs may have limited control for investors, as management decisions are often in the hands of a trustee, and tax benefits could be impacted if the investment fails to meet certain regulatory requirements.

Suitable Investment for you?

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 file a complaint for 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 Lawsuit 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 action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

FINRA Lawsuits

If you are concerned about your investment in Government Lease Holdings 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.

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.