CX Retreat at the Park, DST
The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended CX Retreat at the Park, DST to investors.
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.
According to SEC filings, CX Retreat at the park, based in Tampa, FL, filed a Form D to raise capital from investors. The total offering amount sold was purportedly $18,708,724 according to the Reg D Filing.
Although DSTs may be suitable for some investors, they are not the best option for everyone due to several disadvantages. For instance, 1031 DSTs are unable to raise additional capital after the initial investment, which means that investors may be left with the burden of costly repairs or other unexpected issues, like a drop in occupancy or rental income. The investors also have limited control 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.
Further, 1031 DSTs are illiquid investments, and it can often be difficult to find a buyer if an investor wants to sell their interest before the property is sold.
Is a Delaware State Trust Investment Suitable For You?
Your financial advisor should only recommend investments that are suitable for their clients. The financial advisor should conduct a suitability analysis on a holistic level. Liquidity needs, time horizon, risk tolerance, age, income, are just a few categories an advisor should take into account prior to recommending any investment. Once that is completed the brokerage firm must ensure that due diligence was completed at every level of each investment.
For more information on the risks of 1031 DST investments please see: 1031 Delaware Statutory Trust (DST) Investments Overview
FINRA Claims to Recover Losses
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk investments to investors. Despite the risks of investing in DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Fortunately, 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 Retreat at the Park, DST please contact 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. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com/
Tags: 1031 DST Last modified: July 25, 2023