Investigating Claims involving Core Pacific Maywood Apartments DST
The White Law Group is investigating potential securities claims involving Core Pacific Maywood Apartments, a Delaware Statutory Trust (DST), which filed a Form D Notice of Exempt Offering of Securities with the Securities and Exchange Commission (SEC).
According to the filing, Core Pacific Maywood Apartments offered $33,000,000 in equity securities under Rule 506(b) of Regulation D. The minimum investment for outside investors was listed at $25,000, and the filing notes that approximately 77 investors participated. Sales commissions were reported at nearly $3 million, with more than $7 million in proceeds estimated for payments to related parties.
Understanding DST Investments like Core Pacific Maywood Apartments
Delaware Statutory Trusts (DSTs) are often structured as passive real estate investment vehicles, frequently used in 1031 exchanges to defer capital gains taxes. While they may seem attractive for investors seeking potential tax benefits and steady income, DSTs are generally high-risk, illiquid investments.
Risks of DST Investments
- Illiquidity – Investors may have difficulty selling their interest if they need access to funds.
- High commissions and fees – As indicated in the Maywood Apartments offering, significant proceeds may go toward sales costs and payments to sponsors or managers.
- Concentration risk – DSTs are often tied to a single property or limited portfolio, magnifying market or tenant performance issues.
- Limited control – Investors typically have no management authority over the property.
Broker-Dealer Responsibilities
Broker-dealers that recommended Core Pacific Maywood Apartments or other DST investments have a duty to ensure that such offerings are suitable for the investor’s objectives, financial situation, and risk tolerance. Many investors may not fully understand the risks of DST investments when they are presented as safe or income-producing opportunities. If your financial advisor recommended Core Pacific Maywood Apartments without properly disclosing risks, you may have grounds to pursue recovery of your investment losses through FINRA arbitration.
Recovering Investment Losses in Core Pacific Maywood Apartments
The White Law Group is investigating potential FINRA arbitration claims against brokerage firms that recommended investments in Core Pacific Maywood Apartments. Arbitration may allow investors to recover losses caused by unsuitable recommendations or misrepresentation by their financial advisor.
If you suffered losses in Core Pacific Maywood Apartments or other DST investments, you may have legal options.
Free Consultation
If you invested in Core Pacific Maywood Apartments and are concerned about your losses, the securities attorneys at The White Law Group may be able to help. We represent investors nationwide in claims against broker-dealers and have offices in Chicago, Illinois, and Seattle, Washington. For a free consultation, please call (888) 637-5510 or visit www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs)
What is Core Pacific Maywood Apartments?
Core Pacific Maywood Apartments is a Delaware Statutory Trust (DST) real estate investment that raised $33 million from investors under a Regulation D offering.
Is Core Pacific Maywood Apartments a safe investment?
Like many DSTs, this investment carries significant risks, including illiquidity, high fees, and reliance on property performance, and may be unsuitable for conservative investors.
Can I sell my Core Pacific Maywood Apartments investment?
DST investments are generally illiquid, and there is usually no secondary market for resale.
How can I recover losses from Core Pacific Maywood Apartments?
Investors may be able to pursue claims against the brokerage firms that sold the investment through FINRA arbitration, particularly where risks were misrepresented or suitability was not properly assessed.
