BR Edgewater DST: Help for Investors
Are you concerned about your investment losses in BR Edgewater DST? The White Law Group is investigating potential lawsuits involving the liability that FINRA-registered brokerage firms may have for improperly recommending this high-risk, illiquid investment to retail investors.
What is BR Edgewater DST?
According to SEC filings, Bluerock Value Exchange, LLC filed a Form D in 2021 to raise $30,664,365 for the offering known as BR Edgewater DST. This investment vehicle was structured as a Delaware Statutory Trust (DST), which is frequently used by investors executing a 1031 exchange to defer capital gains taxes.
DSTs are marketed as passive real estate investments that provide diversification and potential monthly income without active property management responsibilities. However, they carry significant risks, particularly when unsuitably recommended to conservative or income-focused investors.
Risks of Investing in BR Edgewater DST
All 1031 DST investments come with substantial downsides:
- Illiquidity – There is no public secondary market for DST interests. Investors typically cannot access their principal for 7–10 years or longer.
- No Control – Investors have no voting rights or input on operational or exit decisions.
- Capital Constraints – DSTs cannot raise additional capital, leaving investors vulnerable to issues like costly repairs, declining occupancy, or reduced rental income.
While there may be tax benefits for investors completing a 1031 exchange, the lack of liquidity and control can make DSTs highly unsuitable for many investors, especially retirees or those needing access to capital in the near term.
Broker Liability for Unsuitable DST Recommendations
Unfortunately, some financial advisors may recommend complex, high-risk investments like BR Edgewater DST to earn excessive commissions, without fully disclosing the risks or ensuring the investment is suitable for the investor’s goals and risk tolerance.
FINRA-registered broker-dealers are legally required to:
- Conduct adequate due diligence on each investment offering
- Make only suitable recommendations based on an investor’s financial profile
- Disclose all material risks and conflicts of interest
If a firm fails in these responsibilities, and an investor suffers losses, the firm may be held liable through a FINRA arbitration claim.
Recovering Investment Losses in BR Edgewater DST
The White Law Group has represented numerous investors who suffered losses due to unsuitable DST recommendations. If you invested in BR Edgewater DST and are concerned about your investment, you may have legal options to recover your losses.
Free Consultation with a Securities Attorney
Call The White Law Group at 888-637-5510 for a free case evaluation. Our experienced securities attorneys can help determine whether you have a viable FINRA arbitration claim.
About The White Law Group
With offices in Chicago, Illinois and Seattle, Washington, The White Law Group is a national law firm focused on securities fraud and investor protection. Since 2010, the firm has handled over 800 FINRA arbitration cases, helping investors nationwide recover losses due to broker misconduct and unsuitable investment recommendations.
Our attorneys have over 30 years of experience handling claims involving:
- Broker fraud and misrepresentation
- Unsuitable investment recommendations
- Churning and excessive trading
- Selling away and unauthorized transactions
Frequently Asked Questions (FAQs)
1. What is BR Edgewater DST?
BR Edgewater DST is a real estate investment structured as a Delaware Statutory Trust (DST), sponsored by Bluerock Value Exchange. It was offered in 2021 to investors, primarily for use in 1031 exchange transactions.
2. Why are DST investments considered risky?
DSTs are illiquid, offer no investor control, and cannot raise additional capital if financial issues arise. These features make them risky for many investors, particularly those seeking flexibility or principal preservation.
3. Can I recover losses from BR Edgewater DST?
You may be able to recover losses through FINRA arbitration if your financial advisor failed to disclose the risks or recommended the investment without considering your financial situation. Contact The White Law Group for a free consultation.
Last modified: May 13, 2025
