Concerned About Your Investment in MCG South End, LLC?
If you invested in MCG South End, LLC, you may be able to recover investment losses. The White Law Group is investigating whether brokerage firms may have improperly recommended this high-risk private placement investment to retail investors.
Overview of MCG South End, LLC
MCG South End, LLC is a real estate development entity formed in 2022 and based in Charlotte, North Carolina. According to a Form D filed with the Securities and Exchange Commission, the investment was offered under Rule 506(b) of Regulation D.
The sponsor of the offering is Madison Capital Group, a real estate investment and development firm known for residential multifamily and self-storage properties. The total offering amount was reported as $27,966,100, with approximately $1.5 million sold to date. The minimum investment accepted was $25,000.
The offering was marketed by Coastal Equities, Inc. (CRD#: 23769), a FINRA-registered broker-dealer. Estimated sales commissions were listed as $1,677,966, or about 6% of the total raise.
“The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete. The reader should not assume that the information is accurate and complete.” – Form D, SEC.gov
Risks of Private Real Estate Investments Like MCG South End, LLC
Private placement investments such as MCG South End, LLC are illiquid and high-risk. They are generally not suitable for investors who need access to their capital or who are seeking low-risk income investments. Common risks include:
- No public market for resale
- High upfront commissions and fees
- Minimal transparency or reporting obligations
- Potential conflicts of interest
- Exposure to local real estate market downturns
These types of offerings are typically only suitable for accredited investors who can bear the risk of total loss.
Broker Due Diligence Obligations
FINRA rules require brokers and financial advisors to perform due diligence on any investment they recommend and to ensure it is suitable based on the investor’s risk tolerance, financial profile, and investment objectives.
If your broker failed to disclose the risks or recommended MCG South End, LLC without understanding your personal financial situation, you may be eligible to pursue a FINRA arbitration claim to recover losses.
Lawsuit Options: FINRA Arbitration vs. Class Action
Investors seeking to recover losses in MCG South End may consider the following legal paths:
- Individual FINRA Arbitration – Allows you to seek damages directly from the brokerage firm that sold you the investment
- Class Action Lawsuit – May be appropriate if many investors experienced similar losses, but recovery amounts can be limited
Most private placement recovery efforts proceed through FINRA arbitration, which is generally faster and more investor-friendly than class action litigation.
Free Case Review – The White Law Group
If you suffered financial losses the securities attorneys at The White Law Group may be able to help you. We represent investors across the country in claims against brokerage firms for improper investment recommendations.
Call for a Free Consultation at 888-637-5510 or visit https://whitesecuritieslaw.com/
Last modified: July 10, 2025
