BR Harrison Trace DST: Help for Investors
Are you concerned about your investment in BR Harrison Trace DST?
The White Law Group is investigating potential FINRA arbitration claims on behalf of investors who were misled or unsuitably recommended these high-risk, illiquid investments.
Overview of BR Harrison Trace DST
BR Harrison Trace DST is structured as Delaware Statutory Trusts (DSTs), often used as a replacement property in a 1031 exchange. These investments are promoted for their potential to generate passive income and offer tax deferral benefits. However, DSTs can be risky and illiquid, especially for conservative investors seeking preservation of capital.
Case Spotlight: BR Harrison Trace DST
According to SEC filings, Bluerock Real Estate, LLC filed a Form D in 2022 to raise $48,182,163 for BR Harrison Trace DST. This DST, may have been misrepresented as safe or low-risk, while actually posing significant limitations and potential downsides.
Risks of Investing in BR Harrison Trace DST
While DSTs can provide tax deferral for 1031 exchange investors, they come with significant risks:
- Illiquidity – No secondary market; funds are typically locked up for 7–10 years.
- No Control – Investors have no voting rights or input in property management.
- No Capital Flexibility – DSTs cannot raise additional funds to cover major repairs or market downturns.
- High Commission Incentives – Some brokers may recommend these to earn large upfront commissions, regardless of investor suitability.
Broker Due Diligence Obligations
FINRA-registered brokerage firms are legally obligated to:
- Perform reasonable due diligence on investment offerings
- Recommend only investments that are suitable for the investor
- Disclose all material risks and conflicts of interest
If a broker fails in these duties, and you suffer financial losses as a result, they may be held liable in a FINRA arbitration claim.
Recovering Investment Losses in BR Harrison Trace DST
The White Law Group has handled hundreds of cases involving 1031 DSTs and unsuitable alternative investments. If you invested in BR Harrison Trace DST and are concerned about your investment, we may be able to help you recover your losses through a FINRA arbitration claim.
Free Case Review
Contact the securities attorneys at The White Law Group for a free consultation:
888-637-5510
www.whitesecuritieslaw.com
About The White Law Group
The White Law Group is a national securities fraud, arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. Since its founding in 2010, the firm has handled over 800 FINRA arbitration cases, helping investors nationwide.
Frequently Asked Questions (FAQs)
1. What is a DST (Delaware Statutory Trust)?
A DST is a legal entity used to hold title to investment real estate. It allows multiple investors to own fractional interests, often used in 1031 exchanges. DSTs are passive investments with no control for individual investors.
2. Why is this DST considered risky?
Though marketed as stable, these investments are highly illiquid, cannot raise additional capital, and give investors no control. If property income falls or expenses rise, investors may experience losses with no ability to exit.
3. Can I sue my broker for recommending a DST investment?
You may be able to file a FINRA arbitration claim if your broker misrepresented the investment or failed to assess your financial goals and risk tolerance. Contact our attorneys to discuss your legal options.
Last modified: May 16, 2025
