DC Industrial Liquidating Trust Investor Update

DC Industrial Liquidating Trust Recent SEC Filings

Did you lose money investing in DC Industrial Liquidating Trust at the recommendation of your financial advisor? If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like DC Industrial Liquidating Trust. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

According to their website, “Dividend Capital is an innovative real estate investment management firm focused on building value through the power of real estate”. Dividend Capital sponsors REIT programs such as DC Industrial Liquidating Trust.

DC Industrial Liquidating Trust Investor Update

On May 25, 2017, DC Industrial Liquidating Trust received a written termination notice from TA Realty, LLC terminating, in accordance with its terms, the previously disclosed Purchase and Sale Contract dated April 28, 2017, by and among the Buyer, the Trust and a subsidiary of the Trust.

The termination was effected pursuant to the Buyer’s right to terminate for any reason during the first 30 days after signing. The Purchase Agreement provided for the sale to the Buyer of the property commonly known as “Cajon Distribution Center,” an 830,750 square foot distribution warehouse located in San Bernardino, California, for approximately $65.2 million in cash..

Risks of REITs

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.  Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like DC Industrial Liquidating Trust, despite its name, often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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.

If you suffered losses investing in DC Industrial Liquidating Trust and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.