Have You Suffered Losses Investing in Garden Grove Self Storage Partners?
The White Law Group is currently investigating potential FINRA arbitration claims on behalf of investors who may have been misled by broker-dealers recommending investments in Garden Grove Self Storage Partners, LLC, a Regulation D private placement filed in 2021.
Details of the Regulation D Offering
According to a Form D filed with the SEC, Garden Grove Self Storage Partners, LLC is a Delaware limited liability company formed in 2021 with a business address in Scottsdale, Arizona. The offering was filed under Rule 506(b) of Regulation D and structured as a debt offering related to commercial real estate, specifically self-storage investments. As disclosed in the filing, the total offering amount was $5,500,000, with a minimum investment of $50,000 per investor.
Broker-Dealer Participation and Commission Payments
The Form D identifies Noble Capital Markets, Inc. (CRD#: 15768) as the placement agent for the offering. The firm was reportedly responsible for soliciting investors in several states, including Arizona, Florida, California, and Texas. Noble Capital Markets was projected to receive $225,000 in sales commissions, according to the filing. While this figure is marked as an estimate, it raises concerns about potential conflicts of interest and the high upfront costs often associated with private placements.
Private Placement Risks
Private placement investments like Garden Grove Self Storage Partners, LLC are often marketed as alternative assets with income or growth potential. However, these investments also come with significant risks, including:
- Lack of liquidity – Investors may be unable to sell their interests for years, if ever.
- High commissions and fees – Brokers may earn large commissions, which can create pressure to sell regardless of suitability.
- Limited financial transparency – These offerings are not subject to the same disclosure requirements as publicly traded investments.
- Sponsor and project risk – Early-stage or speculative real estate projects can fail to meet projections.
Due Diligence Responsibilities of Broker-Dealers
FINRA requires broker-dealers to conduct reasonable due diligence before recommending private placements to customers. This includes:
- Verifying the legitimacy of the issuer and its management team;
- Understanding the structure, risks, and fees associated with the offering;
- Ensuring the investment is suitable for the individual investor based on their financial situation and objectives.
Failure to meet these obligations could make the firm liable for investor losses through FINRA arbitration.
Recovering Investment Losses through FINRA Arbitration
If you were recommended an investment in Garden Grove Self Storage Partners, LLC and are now facing losses, you may be entitled to recover your investment through FINRA Arbitration. Unlike class actions, this forum allows investors to bring individual claims against broker-dealers and potentially recover damages for misrepresentation, failure to conduct due diligence, or unsuitable investment advice. The White Law Group has handled over 800 FINRA arbitration cases nationwide and focuses exclusively on representing investors in securities fraud and FINRA claims.
Free Legal Consultation
If you invested in Garden Grove Self Storage Partners at the recommendation of a financial advisor and have questions about your recovery options, contact The White Law Group at (888) 637-5510 for a free consultation. Our securities attorneys are here to help. Visit us at www.whitesecuritieslaw.com for more information.
Frequently Asked Questions (FAQs) : Garden Grove Self Storage Partners
1. What is Garden Grove Self Storage Partners, LLC?
It is a private real estate investment entity formed in 2021 to raise $5.5 million through a Regulation D offering focused on self-storage property.
2. How much were brokers paid to sell this investment?
The offering projected $225,000 in estimated commissions to placement agent Noble Capital Markets, which may affect the objectivity of investment recommendations.
3. Can I recover my investment losses?
Yes, if your broker failed to properly disclose the risks or if the investment was unsuitable for your financial profile, you may be eligible to file a FINRA arbitration claim.
Last modified: August 7, 2025
