Concerned About Your Investment in BT Mankato Student Housing DST?
If you have invested in BT Mankato Student Housing DST and are worried about potential losses, you are not alone. The White Law Group is investigating whether brokerage firms may be liable for improperly recommending this high-risk, illiquid investment to retail investors.
Overview of BT Mankato Student Housing DST
BT Mankato Student Housing DST is a Delaware Statutory Trust formed in 2022 and sponsored by Baker Tilly. The investment was offered as a private placement under Rule 506(b) of Regulation D for use in 1031 exchange transactions. According to filings with the Securities and Exchange Commission (SEC), the issuer sought to raise $49 million from investors.
While DSTs like BT Mankato Student Housing DST may offer tax benefits and passive income, they are complex and illiquid investments that may not be suitable for all investors—particularly those with low risk tolerance or liquidity needs.
Key Risks of DST Investments Like BT Mankato Student Housing DST
Though often marketed as secure, income-generating real estate vehicles, DSTs come with several significant risks:
- Illiquidity – Investors generally cannot sell or exit before the trust’s termination, limiting access to capital.
- No Control – DST investors have no input on how the property is managed, financed, or sold.
- High Upfront Costs – This offering included estimated sales commissions of over $4.77 million, which can significantly reduce returns.
- Large Use of Proceeds to Insiders – Nearly $8.9 million of offering proceeds were estimated to be paid to executives, promoters, or affiliated entities.
Did Your Financial Advisor Misrepresent This Investment?
Financial professionals have a duty to recommend only investments that align with their clients’ individual needs, goals, and risk profiles. If your advisor did not fully disclose the risks, fees, or illiquidity associated with BT Mankato Student Housing DST—or failed to evaluate whether it was suitable for your circumstances—you may have a claim.
Recovering Losses through FINRA Arbitration
If you believe your broker failed to conduct due diligence or misrepresented the nature of this investment, you may be able to recover your losses through FINRA arbitration. This process allows investors to seek damages for unsuitable investment recommendations, misrepresentations, or negligence by their brokerage firm.
The White Law Group has filed hundreds of FINRA arbitration claims involving high-risk investments like DSTs, REITs, and private placements.
Contact The White Law Group for a Free Consultation
If you’ve suffered investment losses in BT Mankato Student Housing DST, call 888-637-5510 for a free consultation with our experienced securities attorneys. The White Law Group represents investors nationwide on a contingency fee basis—meaning there are no fees unless we recover money on your behalf.
Visit www.whitesecuritieslaw.com to learn more.
Frequently Asked Questions (FAQs) – BT Mankato Student Housing DST
- What is BT Mankato Student Housing DST?
It is a Delaware Statutory Trust offered as a Regulation D private placement in 2022. The DST was structured to support 1031 exchange investors, raising up to $49 million for a student housing investment.
- Why are DSTs risky?
DSTs are long-term, illiquid investments that often involve high fees, limited transparency, and no investor control. These risks make them unsuitable for many retail investors.
- What is considered a misrepresentation by a broker?
If your financial advisor failed to explain the investment’s fees, liquidity restrictions, or suitability—or did not perform a proper risk assessment—it may be considered misrepresentation or negligence.
- How does FINRA arbitration work?
FINRA arbitration is a legal forum for resolving disputes between investors and brokerage firms. It is typically faster and more cost-effective than going to court and may result in financial recovery.
- What are my time limits for taking legal action?
There are strict time limits to file a claim, often tied to when the investor knew or should have known of the losses. It’s important to act quickly—contact a securities attorney as soon as possible.
Last modified: July 10, 2025
