Citrus Park Hotel DST Securities Investigation
The White Law Group is investigating potential securities claims involving Citrus Park Hotel DST, a Delaware statutory trust formed in 2019. According to a Form D filing with the SEC, the issuer is attempting to raise $15.7 million through a private placement under Rule 506(b) of Regulation D.
About the Offering
Citrus Park Hotel DST was established to acquire and manage commercial real estate assets, specifically in the hotel sector. The trust, headquartered in Scottsdale, Arizona, is offering equity securities with a minimum investment of $25,000. As of the most recent filing, $1.7 million has been sold, leaving more than $14 million still available. Placement agents include Orchard Securities, LLC (CRD#: 133378) and Emerson Equity LLC (CRD#: 130032). The issuer disclosed estimated sales commissions of $1.49 million and insider-related fees of $589,000 payable to Virtua Partners and its affiliates.
Risks of DST Investments
DST offerings are often marketed as tax-deferred 1031 exchange opportunities, but they are highly speculative and may not be suitable for many retail investors. Potential risks include:
- Lack of liquidity and inability to exit the investment.
- High sales fees and commissions that reduce returns.
- Dependence on hotel performance and tourism demand.
- Conflicts of interest with sponsors and affiliates.
Broker Liability
Broker-dealers have a duty to perform proper due diligence before recommending investments like Citrus Park Hotel DST. They must also ensure the investment is suitable for each investor’s financial profile. If your advisor failed to properly disclose risks or recommended this DST inappropriately, you may be entitled to pursue claims against the firm.
Investor Recovery Options
Many investors who suffer losses in private placements pursue recovery through FINRA arbitration. Arbitration is generally faster and more cost-effective than litigation or class actions, and it allows investors to hold brokerage firms accountable for improper recommendations.
The White Law Group’s Investigation
The White Law Group has handled numerous claims involving Delaware Statutory Trusts and high-commission real estate investments. Our firm has successfully represented investors in over 700 FINRA arbitration cases nationwide.
If you invested in Citrus Park Hotel DST and would like a free consultation with a securities attorney, contact The White Law Group at (888) 637-5510 or visit www.whitesecuritieslaw.com.
FAQs
Who sponsored Citrus Park Hotel DST?
The sponsor and trustee affiliates include Virtua Partners (US), LLC, with Quynh Palomino and Lloyd Kendall, Jr. listed as executive officers and promoters.
How much does the offering pay in commissions?
The issuer disclosed an estimated $1.49 million in commissions, plus additional fees of approximately $589,000 to affiliated sponsors.
What should I do if I was sold this DST?
If you believe the investment was misrepresented or unsuitable for your portfolio, you should consult with a securities attorney to review potential recovery options.
