CX Alexandria DST – Investment Investigation

CX Alexandria, DST – Investor Lawsuits

The White Law Group is investigating potential claims involving CX Alexandria, DST, a Delaware Statutory Trust formed in 2021. According to a Form D filed with the SEC, the offering sought to raise $40,891,252 through pooled investment fund interests and equity securities. The minimum investment reported was $25,000.

Broker-dealers including Concorde Investment Services, Colorado Financial Service Corporation, TCFG Wealth Management, American Trust Investment Services, DFPG Investments, DAI Securities, Huntwicke Securities, and Aurora Securities were listed as participants in the sale of the offering.

Sales commissions and fees were estimated at over $3.7 million, with approximately $2.3 million in acquisition fees and organizational expenses payable to related parties.

Risks of DST Investments

Delaware Statutory Trusts (DSTs) are often pitched as 1031 exchange-eligible investments, appealing to investors seeking to defer capital gains taxes. However, these investments carry substantial risks, including:

• Illiquidity – Investors may not be able to sell their interest if they need access to capital.

• High upfront fees and commissions – A significant portion of investor funds may go toward costs rather than the underlying real estate.

• Lack of transparency – Investors may have limited insight into management decisions or the financial health of the investment.

• Concentration risk – DSTs often involve a single property or a small portfolio, exposing investors to potential loss if the property underperforms.

Because of these risks, FINRA-registered brokers must ensure DSTs are suitable for each individual client. Unsuitable recommendations may provide investors with potential claims against the brokerage firms that sold the investment.

Recovery Options for Investors

If you suffered losses investing in CX Alexandria, DST, you may be able to pursue recovery through FINRA arbitration claims against the broker-dealer that recommended the investment. FINRA arbitration is generally a faster and more efficient avenue than joining a class action, as it allows investors to bring claims individually and seek recovery of losses based on their unique circumstances.

FAQs

1. What is CX Alexandria, DST?
CX Alexandria, DST is a Delaware Statutory Trust (DST) formed in 2021 to pool investor money for real estate investment. The offering raised capital through private placement under SEC Regulation D, Rule 506(b).

2. Why are DST investments like CX Alexandria considered risky?
DSTs are illiquid, high-fee, and dependent on the performance of underlying real estate. If the property underperforms or market conditions shift, investors can face substantial losses.

3. Can I recover losses from a DST investment?
Possibly. If your financial advisor or brokerage firm recommended the investment without properly considering your risk tolerance, liquidity needs, or investment objectives, you may have a claim to recover losses through FINRA arbitration.

The White Law Group Can Help

If you are concerned about your investment in CX Alexandria, DST, contact The White Law Group at (888) 637-5510for a free consultation. Our securities attorneys have extensive experience representing investors in claims involving DST investments and private placements.