CX Lullwater at Blairstone DST – Securities Investigation

Investigating Potential Claims involving CX Lullwater at Blairstone, DST

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended CX Lullwater at Blairstone DST to investors.

According to SEC filings, CX Lullwater at Blairstone DST based in Tampa, Florida filed a form D to raise capital from investors. The total offering amount sold was purportedly $27,236,208 according to the Reg D Filing.

A Delaware Statutory Trust, often referred to as a DST, possesses a unique and relatively higher level of risk compared to other investment types. Recent data from Robert A. Stanger & Co. and Mountain Dell Consulting indicates that fundraising efforts for Delaware statutory trust offerings have reached slightly more than $2.5 billion for the year ending in June 2023. Based on this average monthly fundraising trend through June, it appears that DST statistics are projected to generate slightly over $5 billion in 2023.

Although DSTs may be suitable for some investors, they are not the best alternative for everyone due to their financial disadvantages. One example is that 1031 DSTs cannot raise additional capital after the initial investment, which means that investors may be responsible for unexpected expenses, such as repairs, or a decrease in occupancy or rental income. The investors also have limited authority over the property. While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor. The issue of illiquidity is also a primary concern when it comes to investing in a DST. This makes it difficult to find a buyer if an investor wants to sell their interest prior to sale of the property.

For more information on the risks of 1031 DST investments please see:  1031 Delaware Statutory Trust (DST) Investments Overview

CX Lullwater Blairstone DST – Suitable Investment for you?

Before suggesting investments to their clients, financial advisors should carefully assess their suitability. Numerous factors should be considered to guarantee that an investment aligns with the client’s financial situation. These factors encompass liquidity requirements, the time horizon for the investment, risk tolerance, age, and income level. Following this assessment, the brokerage firm must confirm that comprehensive due diligence has been undertaken for each investment at every stage. It is essential to thoroughly examine all aspects of the investment and conscientiously evaluate the available options before deciding to invest in a DST.

Investors May Have Claims

The White Law Group is currently investigating the potential liabilities of FINRA registered brokerage firms for making improper recommendations of high-risk 1031 DST investments to investors. These brokerage firms persist in promoting such investments, despite the inherent risks associated with investing in DSTs, often due to the significant commissions tied to their sale and establishment. It is important to note that FINRA does provide an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.

If you are concerned about your investment in CX Lullwater at Blairstone, DST please contact the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.