Concerned About Your Investment in JLLX Whitestown DST?
If you’ve experienced unexpected losses with JLLX Whitestown DST, you may have legal options. The White Law Group is reviewing potential FINRA arbitration claims involving brokerage firms that may have improperly sold this high-risk investment to unsuspecting investors.
Background on JLLX Whitestown DST
JLLX Whitestown DST is a Delaware Statutory Trust created by JLL Exchange TRS, LLC. Designed for use in 1031 exchange transactions, it was marketed as a passive real estate investment. In 2021, the sponsor filed a Form D with the SEC, disclosing a capital raise of over $32 million, with more than 6% allocated to fees and commissions.
While these offerings can be appealing for their tax deferral benefits, the risks are often underemphasized.
Understanding the Hidden Risks of 1031 DSTs
DSTs like BR DeSota may sound attractive, especially to investors seeking income and tax benefits. However, they come with several significant drawbacks:
· No ability to raise capital post-closing: If maintenance or emergency costs arise, there’s no mechanism to raise more funds.
· Limited investor control: Ownership is passive, with no decision-making power—even during downturns.
· Illiquidity: Selling your interest early is often not an option, which may pose a problem if you need access to your funds.
These risks make 1031 DSTs potentially unsuitable for many retail investors, particularly retirees.
Could Your Broker Be at Fault?
Brokers and financial advisors are required to recommend investments that are suitable for your financial profile and to conduct adequate due diligence before making any recommendations.
If your broker failed to properly explain the risks or failed to consider your personal financial goals, they—and their firm—could be held liable in a FINRA arbitration claim.
Recovering Losses Through FINRA Arbitration
FINRA provides a dispute resolution forum specifically for investors. If you believe your investment in JLLX Whitestown DST was misrepresented or inappropriately recommended, The White Law Group may be able to help you recover your losses through arbitration—without going to court.
Get Legal Help Today
To discuss your potential claim involving JLLX Whitestown DST, call the experienced securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
We are a nationwide securities arbitration law firm with offices in Chicago, Illinois, and Seattle, Washington, dedicated to helping investors recover losses caused by negligent or unethical financial advisors. Visit whitesecuritieslaw.com to learn more.
FAQs – JLLX Whitestown DST & Your Legal Options
1. What made JLLX Whitestown DST a risky investment?
It offered no control for investors, had limited liquidity, and carried high upfront fees—characteristics that can be especially problematic during market downturns or property-level issues.
2. How do I know if I have a claim against my broker?
If your advisor failed to explain the risks, didn’t assess your investment objectives, or recommended JLLX Whitestown DST without proper due diligence, you may have grounds for a FINRA arbitration claim.
3. Is there a deadline to file a claim for investment losses?
Yes. Like most legal matters, investment fraud claims are subject to statutes of limitation. It’s best to consult with a securities attorney as soon as possible to evaluate your options.
Last modified: May 27, 2025
