Inland Self-Storage Portfolio III DST Investor Lawsuits
The White Law Group is investigating potential securities claims involving Inland Private Capital Corporation-sponsored Self-Storage Portfolio III DST, a private placement investment involving self-storage properties in Houston, Texas. Investors who purchased interests through a broker or financial professional may have potential claims depending on the circumstances of the recommendation and sale.
Inland Self-Storage Portfolio III DST
Self-Storage Portfolio III DST was established as a Delaware statutory trust and sponsored by Inland Private Capital Corporation (IPCC). The offering may also have been marketed as Inland Self-Storage Portfolio III or Inland Houston Self-Storage Portfolio III. The issuer identified in the SEC’s Regulation D filing is Self-Storage Portfolio III DST.
The offering involved four Houston-area self-storage properties and was structured as a private placement of beneficial interests in a DST. The investment was also designed for investors seeking to participate in a tax-deferred Section 1031 exchange.
According to SEC filings, the offering amount was approximately $20 million, with approximately $19 million sold to 63 investors. The filing reported approximately $1 million in sales commissions and related compensation.
Regulation D Private Placement
The offering was conducted under Regulation D, meaning the securities were offered pursuant to an exemption from SEC registration. Regulation D does not mean an investment is risk-free, nor does it eliminate the obligations of brokerage firms and financial professionals when recommending private placements to customers.
Private placement investments can involve substantial risks, including illiquidity, limited investor control, valuation uncertainty, leverage, real estate market risk and the potential loss of principal.
For investors participating in a 1031 exchange, the tax benefits of the structure do not eliminate the underlying investment risks.
Broker Due Diligence and Suitability
Broker-dealers that recommend private placements generally have obligations to conduct reasonable due diligence and understand the investments they sell. Financial professionals also have obligations concerning whether a particular investment is appropriate for an individual customer.
As part of its investigation, The White Law Group may examine whether brokerage firms adequately investigated Self-Storage Portfolio III DST before recommending it, including the offering’s financial projections, property valuations, debt, fees, sponsor compensation, liquidity restrictions and other material risks.
The investigation may also consider whether the investment was suitable for the investor’s financial circumstances, investment objectives, risk tolerance and overall portfolio.
Potential Claims Involving Self-Storage Portfolio III DST
Depending on the circumstances, investors may have potential claims involving:
- Unsuitable investment recommendations
- Failure to adequately disclose risks
- Misrepresentations or omissions concerning the investment
- Failure to conduct adequate due diligence
- Excessive concentration in illiquid alternative investments
- Undisclosed or inadequately disclosed commissions and conflicts of interest
- Violations of applicable securities laws or FINRA rules
A loss alone does not establish a securities violation. Each investor’s circumstances, account records and the conduct of the broker or financial professional must be evaluated individually.
FINRA Arbitration and Recovery of Investment Losses
Investors who purchased Inland Self-Storage Portfolio III DST through a FINRA-member brokerage firm may be able to pursue recovery through FINRA arbitration. Potential claims may involve unsuitable recommendations, inadequate due diligence, misrepresentations or omissions, failure to disclose risks or conflicts of interest, or inadequate supervision.
Depending on the circumstances, investors may seek to recover losses caused by the brokerage firm’s conduct. Important time limits apply. FINRA Rule 12206 generally provides a six-year eligibility period for arbitration claims, while other statutes of limitations may also apply. Because this offering dates back several years, investors should have their potential claims reviewed promptly.
Were You Sold Inland Self-Storage Portfolio III DST?
If you invested in Self-Storage Portfolio III DST, Inland Self-Storage Portfolio III, Inland Houston Self-Storage Portfolio III, or a similarly named Inland private placement through a financial advisor or brokerage firm, The White Law Group would like to hear from you.
We are investigating whether investors may have claims against the brokerage firms and financial professionals who recommended these investments.
Contact The White Law Group
The White Law Group is investigating potential FINRA arbitration claims involving Inland Self-Storage Portfolio III DST.
If you believe you were sold an unsuitable or improperly recommended private placement, our attorneys can review the circumstances of your investment and discuss whether you may have a potential claim.
Call 888-637-5510 for a confidential, free consultation.
Frequently Asked Questions
Is Inland Self-Storage Portfolio III DST a Regulation D investment?
Yes. Self-Storage Portfolio III DST filed a Form D with the SEC, indicating that the offering was conducted pursuant to an exemption from federal securities registration under Regulation D.
Is a DST investment considered a private placement?
Yes. DST interests offered to investors through a Regulation D offering are generally considered private placement securities. They can be substantially less liquid and more difficult to value or sell than publicly traded investments.
Can I recover losses from Inland Self-Storage Portfolio III DST?
Possibly. Whether an investor has a viable claim depends on factors including how the investment was recommended, the investor’s financial circumstances and investment objectives, the disclosures provided, and the conduct of the brokerage firm or financial professional. Time limits may apply to securities claims, so investors should consider having their investment reviewed promptly.
