CAI Investments Lake Forest Global HQ DST: Investor Lawsuit Investigation
Investors in CAI Investments Lake Forest Global HQ DST may be facing significant risks tied to tenant dependence, illiquidity, and lack of control. The White Law Group is investigating whether brokerage firms improperly recommended this complex Delaware Statutory Trust to clients without fully disclosing its risks.
About the Offering
CAI Investments, LLC, a Las Vegas-based real estate development and property management company, filed a Form D in 2018 to raise nearly $22.8 million through the CAI Investments Lake Forest Global HQ DST.
The offering reportedly involved a Class A office building in Lake Forest, Illinois, serving as the global headquarters of Pactiv Evergreen, LLC, a large packaging and food service manufacturer.
Risks of DST Investments
While marketed to 1031 exchange investors as passive, income-generating opportunities, DSTs carry substantial risks. According to CAI’s own materials, risks tied to this offering include:
- Concentration Risk – Reliance on a single commercial property.
- Tenant Dependence – Performance depends entirely on the master tenant paying rent and maintaining the property.
- Lease Risk – Non-renewal or default could severely impact investor returns.
- Lack of Control – Investors cannot influence operations, financing, or property sale decisions.
- Conflicts of Interest – Affiliates of the sponsor may make decisions that are not in investors’ best interests.
- Illiquidity – Interests are difficult to sell, limiting exit options.
These risks make DSTs inappropriate for many retail investors unless carefully matched to their financial situation and tolerance for risk.
Broker Duties and Regulation Best Interest
Broker-dealers recommending DSTs are required under Regulation Best Interest (Reg BI) to perform due diligence and ensure recommendations align with a client’s investment objectives. If advisors recommended CAI Investments Lake Forest Global HQ DST without proper vetting or suitability analysis, investors may be able to recover losses through FINRA arbitration.
Recovery Options: Class Action vs. FINRA Arbitration
Investors often question whether to join a class action or pursue an individual FINRA arbitration. For significant losses (generally above $100,000), individual arbitration is usually a better recovery path. Class actions tend to consolidate smaller claims that are uneconomical to bring on their own.
Free Consultation with a Securities Attorney
If you suffered losses in CAI Investments Lake Forest Global HQ DST, The White Law Group may be able to help. Our firm represents investors nationwide in FINRA arbitration claims against brokerage firms.
For a free consultation, call 888-637-5510 today.
Frequently Asked Questions (FAQs)
What is CAI Investments Lake Forest Global HQ DST?
It is a Delaware Statutory Trust investment involving a single Class A office building in Lake Forest, Illinois, serving as Pactiv Evergreen’s global headquarters.
Why is this DST considered risky?
It is dependent on one tenant, offers no investor control, carries lease risks, and is highly illiquid, making it unsuitable for many investors.
Can I recover my losses if my broker recommended this DST?
Yes. If your advisor failed to perform due diligence or recommended it inappropriately, you may be able to file a FINRA arbitration claim for damages.
Last modified: August 22, 2025
