Securities Attorneys Investigating ADREX Diversified I DST
Concerns About Your DST Investment? Have you suffered investment losses in ADREX Diversified I DST? You may have legal options. The White Law Group is currently reviewing claims on behalf of investors who were sold unsuitable DST investments by their financial advisors.
What is ADREX Diversified I DST?
ADREX Diversified I DST is a real estate investment offering structured as a Delaware Statutory Trust (DST), often used in 1031 exchange transactions. While DSTs are promoted for their potential tax benefits and passive income, they are also complex and high-risk—especially for investors with conservative risk profiles.
Investment Background Public filings with the SEC indicate that Ares Diversified Real Estate Exchange LLC filed a Form D in 2022 to raise over $213 million for ADREX Diversified I DST. Despite being presented to some investors as secure or income-generating, the reality is that DSTs like this one are often speculative, illiquid, and difficult to exit before the investment term ends.
Potential Hazards for Investors
DSTs carry unique risks that may not be suitable for all investors:
· Illiquidity: No public trading market; your money may be tied up for years.
· Lack of Control: Investors cannot influence property decisions or management.
· Inflexible Capital Structure: DSTs cannot raise new funds to adapt to market conditions or emergencies.
· High Commission Products: Advisors may have had financial incentives to sell these offerings regardless of investor suitability.
Responsibilities of Your Financial Advisor
Brokerage firms and financial advisors must comply with FINRA rules that require:
· Proper due diligence on any recommended investment
· Personalized recommendations based on an investor’s profile
· Full and fair disclosure of all material risks
When these duties are neglected and result in investor harm, firms may be held liable through FINRA arbitration.
Can You Recover Your Investment Losses (ADREX Diversified I DST) ?
The White Law Group has handled hundreds of cases involving DSTs and other alternative investments. If your broker misrepresented the risks or failed to conduct due diligence, you may be eligible for compensation. We can help you explore your options through FINRA arbitration.
Schedule a Free Consultation
Speak with a securities fraud attorney today: Phone: 888-637-5510 Web: www.whitesecuritieslaw.com
About Us
The White Law Group is a national law firm focused on representing investors in FINRA arbitration claims. With offices in Seattle, WA and Chicago, IL, we have recovered millions of dollars for clients across the country.
FAQs – ADREX Diversified I DST
1. What is the main appeal of DSTs in a 1031 exchange?
They allow for passive real estate ownership while deferring capital gains taxes from a prior property sale. However, the lack of liquidity and control can be problematic for many investors.
2. How do I know if my DST investment was unsuitable?
If your advisor didn’t explain the risks or assess your financial needs and objectives, the recommendation may have been inappropriate. Elderly or risk-averse investors are especially vulnerable.
3. What is FINRA arbitration?
FINRA arbitration is a legal process used to resolve disputes between investors and brokerage firms. It’s often faster and less expensive than traditional litigation.
Last modified: May 28, 2025
