Colorado Springs Opportunity Zone Offering Details
The White Law Group is investigating potential claims involving Colorado Springs Opportunity Zone, L.L.C., a private placement investment sponsored by Inland Private Capital Corporation.
According to a Form D filed with the Securities and Exchange Commission (SEC), Colorado Springs Opportunity Zone, L.L.C. is a Delaware limited liability company. The filing, in 2021, indicates that the company offered up to $24,460,000 in equity securities under Rule 506(b) of Regulation D, with a minimum investment of $50,000.
The offering lists Inland Private Capital Corporation as the sponsor, and various broker-dealers, including RCX Capital Group LLC, Avantax Investment Services, Infinity Financial Services, Centaurus Financial, Harbour Investments, Benchmark Investments, Capulent LLC, Lincoln Financial Advisors, Thornhill Securities, Great Point Capital, Pinnacle Capital Securities, and others, as placement agents and solicitors of the securities.
What is an Opportunity Zone Investment?
Opportunity Zone investments are designed to provide tax benefits to investors who reinvest capital gains into qualified real estate or business developments within federally designated areas. While these programs may offer potential tax advantages, they are also considered high-risk and illiquid investments.
Risks of Private Placements Like Colorado Springs Opportunity Zone, L.L.C.
- Illiquidity – Investors may not be able to sell their shares or redeem their investment.
- High Commissions – The Form D notes estimated sales commissions of more than $2.1 million. These high fees can create conflicts of interest and reduce overall returns.
- Speculative Real Estate Projects – Opportunity Zone projects often depend on the success of new development, which may not perform as projected.
- Potential Loss of Principal – These investments are not guaranteed and may result in significant losses.
Potential for Investor Complaints Against Broker-Dealers
Brokerage firms that sell private placements are required by FINRA rules to conduct adequate due diligence and ensure that recommendations are suitable given an investor’s age, net worth, investment experience, and objectives.
If a financial advisor or broker unsuitably recommended Colorado Springs Opportunity Zone, L.L.C. to you, or failed to adequately disclose the risks, you may have a claim for recovery of investment losses through FINRA arbitration.
Filing a Lawsuit or Arbitration Claim
Investors who purchased Colorado Springs Opportunity Zone, L.L.C. through one of the listed broker-dealers may be able to pursue claims for recovery of losses. While these claims are generally filed as FINRA arbitration proceedings, not class actions, investors may still recover damages if their broker or financial advisor violated securities laws or industry rules.
Free Consultation with Securities Attorneys
If you are concerned about your investment in Colorado Springs Opportunity Zone, L.L.C., the securities attorneys at The White Law Group may be able to help you. We represent investors nationwide in claims against broker-dealers for improper investment recommendations.
For a free consultation, please call (888) 637-5510 or visit our website to learn more.
Frequently Asked Questions (FAQs) – Colorado Springs Opportunity Zone L.L.C.
What is Colorado Springs Opportunity Zone, L.L.C.?
It is a private placement real estate investment formed in 2019 and sponsored by Inland Private Capital Corporation, structured to take advantage of Opportunity Zone tax incentives.
What are the risks of investing in Colorado Springs Opportunity Zone, L.L.C.?
Risks include illiquidity, high commissions, speculative real estate performance, and potential loss of principal.
Can I sue my broker for recommending Colorado Springs Opportunity Zone, L.L.C.?
Investors may be able to pursue FINRA arbitration claims if their financial advisor made an unsuitable recommendation or failed to disclose the risks associated with this investment.
