Commerce 94 Industrial DST: Securities Investigation 

Investigating Potential Claims: Commerce 94 Industrial DST

The White Law Group is investigating potential securities claims involving the liability that FINRA registered brokerage firms may have for improperly recommending Commerce 94 Industrial DST to investors.

According to SEC filings, Commerce 94 Industrial filed a Form D to raise capital from investors in 2022 for the offering Commerce 94 Industrial DST. The total offering amount was purportedly $42,774,375.

Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.

Illiquid Investment

While there may be tax advantages to investing in a DST, there are several downside risks. Like other real estate, a DST 1031 is considered an illiquid asset. Though you may be receiving cash flow, you won’t have access to any proceeds until the asset is sold, and the program concludes, which could involve a span of 7-10 years or more. 1031 DSTs cannot raise new capital once the investment is made, leaving investors holding the bag if expensive repairs are needed or other issues arise – like a drop in occupancy or rental income.

Further, investors in a 1031 DST often have no rights or say so regarding property operations and, more importantly, no control over when the property will be sold.

The White Law Group has represented numerous investors over the last few years who were improperly invested in 1031 DSTs. Unfortunately, unscrupulous financial advisors will push these products to maximize their own commissions. The firm is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk DSTs to investors.

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.

Free Consultation

If you are concerned about your investment in Commerce 94 Industrial DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. The firm represents investors throughout the country in claims against their brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.

With over 30 years of securities law experience, The White Law Group has the expertise to help investors to recover their securities fraud losses.