Concerned about your investment in CPA Barrington Apartments, DST?
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending CPA Barrington Apartments, DST to investors.
According to the DI Wire, CPA Barrington Apartments is sponsored by Core Pacific Advisors LLC, an investment advisory firm and sponsor of non-traded alternative investment offerings. They reportedly purchased the 376-unit multifamily property, Barrington Place at Somerset Apartments, in Montgomery, Alabama, for $46.8 million in 2019 for their Delaware statutory trust offering, CPA Barrington Apartments DST.
CPA Barrington Apartments DST reportedly filed a form D to raise capital from investors in 2019, according to a filing with the SEC. The total offering amount was purportedly $21,500,000.
Risks of Investing in 1031 DSTs
While there may be tax advantages to investing in a 1031 DST, there may be 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 1031DST often have no rights or say so in regards to property operations, and more importantly, no real control over when the property will be sold.
The White Law Group has represented a number of investors over the last few years who were invested in illiquid 1031DSTs. 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 1031 DSTs to investors.
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 with a Securities Attorney
If you are concerned about your investment in CPA Barrington Apartments, 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.
Last modified: August 13, 2024
