4851 JS Industrial DST Investor Lawsuit Investigation

The White Law Group is investigating potential securities claims involving broker-dealers who may have improperly recommended 4851 JS Industrial DST, a Delaware Statutory Trust formed in 2020 and sponsored by Net Lease Capital Advisors, LLC. According to a Form D filing, the issuer sought to raise capital through a private placement investment.

About the Offering

According to SEC filings, 4851 JS Industrial DST reported a total offering amount of $39,028,568, of which approximately $28.6 million has been sold to 51 investors, leaving more than $10.3 million remaining to be sold. The securities offered were beneficial interests in a Delaware statutory trust under Rule 506(b) of Regulation D.

The filing notes that sales commissions totaled $381,852, with placement handled by a wide network of broker-dealers, including:

• Emerson Equity LLC
• WealthForge Securities, LLC
• Great Point Capital LLC
• Dempsey Lord Smith, LLC
• Growth Capital Services, Inc.
• Lighthouse Capital Group, LLC
• Cabin Securities, Inc.
• TCFG Wealth Management, LLC
• Capulent LLC
• Willow Cove Investment Group, Inc.

Some firms solicited investors nationwide, while others limited solicitation to specific states such as California, Wisconsin, Texas, and Illinois.

Risks of DST Investments

Delaware Statutory Trusts (DSTs) are often marketed to investors seeking 1031 exchange replacement property and passive income. While they may appear attractive, DSTs carry significant risks, including:

• Illiquidity – Interests are generally not publicly traded, leaving investors locked in long term.
• High Fees & Commissions – Upfront costs can exceed 10%, reducing potential returns.
• Sponsor & Broker Conflicts – Incentives may not align with investors’ best interests.
• Market & Concentration Risk – Returns may depend heavily on a single asset or limited portfolio.

Because of these risks, DSTs are typically unsuitable for many retail investors, particularly retirees who need liquidity and income flexibility.

Broker Due Diligence Concerns

Broker-dealers that recommend DSTs have a duty to perform reasonable due diligence on the investments and to ensure suitability for each client’s financial situation and objectives. If your broker failed to properly disclose risks or sold 4851 JS Industrial DST inappropriately, you may have a claim to recover your losses.

FINRA Arbitration vs. Class Action

Investors seeking to recover losses from DST investments generally must file individual claims through FINRA arbitration, rather than joining a class action lawsuit. FINRA arbitration is a forum that allows investors to pursue claims against their brokerage firms for unsuitable recommendations, misrepresentation, or failure to supervise.

Free Consultation

If you invested in 4851 JS Industrial DST 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 brokerage firms for improper investment recommendations.

To schedule a free consultation, please contact us at (888) 637-5510 or visit www.whitesecuritieslaw.com.

FAQs

What is 4851 JS Industrial DST?
It is a Delaware Statutory Trust formed in 2020 for real estate investment purposes, sponsored by Net Lease Capital Advisors, LLC, and sold through a network of broker-dealers.

How much was raised in the offering?
According to SEC filings, the issuer reported a total offering amount of about $39 million, with $28.6 million sold to 51 investors.

Can I sue my broker if I lost money in a DST?
While you typically cannot sue in court, you may be able to recover losses through a FINRA arbitration claim against your brokerage firm.