Investor Alert: San Gabriel Self Storage Partners, LLC – Regulation D Investigation
Have you suffered investment losses in San Gabriel Self Storage Partners, LLC? The securities attorneys at The White Law Group are investigating potential FINRA arbitration claims involving broker-dealers who may have improperly recommended this high-risk private placement offering.
About the Offering – San Gabriel Self Storage Partners, LLC
San Gabriel Self Storage Partners, LLC, a Delaware limited liability company formed in 2020 and headquartered in Scottsdale, Arizona, filed a Form D with the SEC in 2021. The company offered debt securities under Rule 506(b) of Regulation D, raising the full amount of $1,955,000 from 13 investors. The stated minimum investment was $30,000.
The issuer reportedly paid $58,650 in sales commissions to Noble Capital Markets, Inc., a registered broker-dealer (CRD#: 15768), for facilitating the offering. The investment was sold in several states, including Arizona, California, Florida, and New York.
Risks of Regulation D Private Placements
Regulation D offerings like San Gabriel Self Storage Partners, LLC are typically marketed to accredited investors seeking alternative investments with the potential for higher returns. However, these investments carry significant risk, especially when compared to publicly traded securities.
Common risks of Reg D private placements include:
- Illiquidity: These investments are not traded on public exchanges and may be difficult to exit.
- Lack of Transparency: Limited disclosure requirements mean investors may not have access to complete financials or business updates.
- High Fees & Commissions: Commissions and offering expenses can exceed 10%, reducing potential returns.
- Unsuitability for Most Investors: These investments are often complex and speculative, and may be inappropriate for conservative investors.
Broker-Dealer Due Diligence Obligations
Broker-dealers who recommend private placements have a duty to perform reasonable due diligence and ensure the investments are suitable based on their clients’ investment profiles. This includes:
- Reviewing the issuer’s business plan, financial condition, and use of proceeds.
- Disclosing material risks and conflicts of interest.
- Recommending the investment only when it aligns with the client’s financial goals and risk tolerance.
Failure to do so may constitute negligence, breach of fiduciary duty, or failure to supervise—potential grounds for a FINRA arbitration claim.
FINRA Arbitration vs. Class Action
Most investors who wish to pursue claims against their financial advisors must do so through FINRA arbitration, not class action litigation.
Advantages of FINRA arbitration include:
- Faster and more cost-effective resolution
- Customized outcomes based on your individual case
- Binding awards enforceable by law
Most brokerage account agreements include a mandatory arbitration clause making FINRA the default forum for disputes.
Free Consultation with a Securities Attorney
If your broker recommended San Gabriel Self Storage Partners, LLC and you are concerned about your losses or lack of liquidity, you may be entitled to compensation. The White Law Group has recovered millions for investors through over 800 FINRA arbitration claims nationwide.
For a free consultation, call 888-637-5510 or visit www.whitesecuritieslaw.com.
About The White Law Group
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors throughout the U.S. in claims against brokerage firms for improper investment recommendations, fraud, and failure to supervise.
FAQs – San Gabriel Self Storage Partners
1. What is this Reg D?
It is a debt investment offering formed in 2020 as a Delaware LLC to raise funds through a Regulation D private placement.
2. How much was raised and from how many investors?
The issuer raised $1,955,000 from 13 investors, reaching its full stated goal according to its Form D filing.
3. Can I recover losses if I was not properly informed of the risks?
Possibly. If your financial advisor failed to conduct due diligence or misrepresented the risks, you may have a viable FINRA arbitration claim.
Last modified: August 5, 2025
