Apex South Creek DST: Investment Loss Investigation

Apex South Creek DST: Investment Loss Investigation

Apex South Creek DST: Investment Investigation featured by top securities fraud attorneys, The White Law Group

Have you suffered investment losses in Apex South Creek DST?

The White Law Group is investigating potential securities fraud claims involving Apex South Creek DST, a Delaware Statutory Trust sponsored by Versity/Crew. Many investors were sold this 1031 exchange offering by brokerage firms seeking high commissions, despite the substantial risks and illiquidity associated with DST investments. If your financial advisor recommended Apex South Creek DST without properly explaining these risks, you may be entitled to pursue recovery of your losses.

Understanding Apex South Creek DST

Apex South Creek DST is a private placement real estate investment structured as a Delaware Statutory Trust (DST). Sponsored by Versity/Crew, the offering was created for investors seeking to complete a 1031 exchange. According to SEC filings, the issuer reportedly filed a Form D in 2022 to raise approximately $73,580,386.

Risks of Investing in DSTs

Private placement DSTs—such as Apex South Creek DST—are complex, high-risk investments. Common risks include:

• Illiquidity – DSTs cannot be easily sold or traded and often require a holding period of 7–10+ years.

• High Fees & Commissions – Brokers and advisors may receive 9% or more in commissions and fees, reducing investor principal.

• Loss of Principal – Poor real estate performance, economic downturns, or mismanagement may result in significant losses.

• Limited Investor Control – All management decisions are made by the sponsor/trustee, leaving investors with no voting rights.

• Potential Tax Issues – Failure to meet IRS 1031 requirements can jeopardize expected tax benefits.

Did Your Broker Unsuitably Recommend Apex South Creek DST?

Financial advisors are required to ensure that investments are suitable and in the best interest of the client under Regulation Best Interest (Reg BI). Many DSTs are only appropriate for accredited, high-risk-tolerant investors. If a broker fails to perform adequate due diligence or recommends a product inconsistent with the client’s risk profile or liquidity needs, the firm may be liable for losses.

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors often ask whether to pursue a class action or an individual FINRA arbitration claim:

• FINRA Arbitration – Typically best for investors with substantial individual losses (often over $100,000).

• Class Action – More common when large groups of investors suffer small, similar damages.

Most DST-related loss recovery cases are handled through FINRA arbitration, not class actions.

Filing a Lawsuit for Investment Losses

If you invested in Apex South Creek DST and have concerns about the recommendation or performance of your investment, you may be eligible to file a FINRA arbitration claim against the brokerage firm that sold it to you.

For a free consultation, call 888-637-5510 to speak with an experienced securities fraud attorney.

About The White Law Group

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. The firm represents investors nationwide in claims against broker-dealers through FINRA arbitration. Visit our homepage to learn more about options for recovering investment losses.

Frequently Asked Questions (FAQ)

1. Who sponsored the Apex South Creek DST offering?

The DST was sponsored by Versity/Crew, a real estate investment firm known for structuring private placement DST and 1031 exchange offerings.

2. Why are DST investments considered high-risk?

DSTs are long-term, illiquid real estate investments with high fees, limited investor control, and the potential for loss of principal. They are generally only suitable for accredited investors with a high risk tolerance.

3. Can I recover losses if my broker said the investment was “safe” or “guaranteed”?

Yes. If your broker misrepresented the risks or sold Apex South Creek DST as a low-risk or safe investment, you may have grounds to pursue a FINRA arbitration claim for recovery of losses.