BC Exchange Clayton Commerce Center DST: Lawsuit Investigation

Have You Suffered Losses Investing in BC Exchange Clayton Commerce Center DST?

If you invested in BC Exchange Clayton Commerce Center DST and are concerned about potential losses, you are not alone. The White Law Group is investigating potential claims involving brokerage firms that may have improperly recommended this high-risk, illiquid offering to retail investors.

About the Offering – BC Exchange Clayton Commerce Center DST

According to a Form D filed with the Securities and Exchange Commission (SEC), BC Exchange Clayton Commerce Center DST is a Delaware statutory trust formed in 2020. The sponsor of the offering is Black Creek Exchange LLC, based in Denver, Colorado.

The Regulation D private placement was structured as an equity offering and reportedly raised $66,216,508 from 36 investors. The minimum investment accepted was $500,000.

Participating broker-dealers included large firms such as Morgan Stanley, Ameriprise Financial, Commonwealth Financial Network, Emerson Equity, and others. The offering involved substantial sales commissions and fees, totaling an estimated $3.53 million. An additional $3 million in proceeds was reportedly allocated to related parties and affiliates of the issuer.

Risks of Investing in DSTs like BC Exchange Clayton Commerce Center DST

Delaware Statutory Trusts (DSTs) are frequently marketed to investors as secure, income-producing real estate investments with tax deferral benefits under Section 1031 exchanges. However, these investments carry significant risks that may not be suitable for all investors:

• Lack of Liquidity – DSTs are illiquid and generally cannot be sold or redeemed prior to the end of the trust’s lifecycle.
• No Control – Investors have no control over management decisions or the sale of the property.
• High Upfront Fees – Offering costs, commissions, and organizational fees often exceed 10%, reducing investor returns.
• Risk of Loss – As with any real estate investment, there are risks tied to market fluctuations, tenant occupancy, and property-level expenses.
• Concentration Risk – DSTs often involve a single property or limited number of assets, increasing exposure to localized downturns.

Did Your Financial Advisor Properly Disclose the Risks?

Brokerage firms have a duty to conduct due diligence and to recommend investments only when they are appropriate for an investor’s needs, objectives, and risk tolerance. If your financial advisor failed to fully disclose the illiquidity, complexity, or commission structure of BC Exchange Clayton Commerce Center DST, you may be entitled to compensation.

Many investors were not made aware of how illiquid and speculative DSTs can be—or the high fees that often accompany them.

FINRA Arbitration for Investment Loss Recovery

Investors who were misled or unsuitably advised may be able to recover losses through FINRA arbitration, a dispute resolution process designed for claims against brokerage firms. The White Law Group has handled hundreds of such cases involving DSTs, REITs, and other high-risk private placements.

Free Consultation with a Securities Attorney

If you suffered losses investing in BC Exchange Clayton Commerce Center DST, contact The White Law Group for a free, no-obligation consultation at 888-637-5510. We represent investors nationwide and work on a contingency fee basis—meaning you pay nothing unless we recover funds for you.

For more information, visit www.whitesecuritieslaw.com.

FAQs – BC Exchange Clayton Commerce Center DST

1. What is BC Exchange Clayton Commerce Center DST?

It is a Delaware statutory trust formed in 2020 and offered as a Regulation D private placement for 1031 exchange investors. The offering raised more than $66 million from 36 investors.

2. Why are DSTs considered risky?

DSTs are long-term, illiquid investments with limited transparency, high fees, and no investor control. These risks are often unsuitable for conservative or income-dependent investors.

3. What can I do if my broker misrepresented the investment?

You may be able to file a FINRA arbitration claim against your broker-dealer to recover your losses. This is a formal legal process designed to resolve investor complaints against financial advisors and firms.