Hartman Retail III, DST: Lawsuit Investigation

Concerned About Your Investment in Hartman Retail III, DST?

If you have invested in Hartman Retail III, DST and are worried about potential losses, you are not alone. The White Law Group is investigating whether brokerage firms may be liable for improperly recommending this high-risk, illiquid investment to retail investors.

Overview of Hartman Retail III, DST

Hartman Retail III, DST is a Delaware Statutory Trust sponsored by Hartman Income REIT and its affiliates. The investment was offered as a private placement in 2019 under Rule 506(b) of Regulation D, commonly used for 1031 exchange strategies. According to filings with the Securities and Exchange Commission (SEC), the issuer sought to raise over $8.1 million.

Though DSTs like this one may offer passive income and tax deferral benefits, they also come with significant downsides that may be inappropriate for many retail investors—especially those seeking income, flexibility, or capital preservation.

Key Risks of DST Investments Like Hartman Retail III, DST

Despite being marketed as secure real estate opportunities, DSTs involve substantial risks that are not always adequately explained to investors:

• Limited Liquidity – Investors cannot easily sell or redeem their investment before the DST’s termination date.
• Lack of Control – Investors have no voting rights or input on property operations or dispositions.
• High Minimum Investment – This offering required a minimum investment of $500,000, placing substantial capital at risk.
• Substantial Fees – The issuer disclosed estimated sales commissions of over $974,000, which can erode investor returns.

Did Your Financial Advisor Misrepresent This Investment?

Brokerage firms are required to perform adequate due diligence and ensure that investment recommendations match the client’s risk tolerance, investment objectives, and overall financial situation. If your advisor failed to disclose key risks—such as illiquidity, high costs, or lack of control—you may have been misled or unsuitably advised.

Recovering Losses through FINRA Arbitration

If you were misled or unsuitably advised to invest in Hartman Retail III, DST, you may be eligible to file a claim through FINRA arbitration. This is a specialized dispute resolution forum that allows investors to pursue compensation from their brokerage firm for investment losses.

The White Law Group has handled hundreds of FINRA arbitration claims involving DSTs, REITs, and other high-risk alternative investments.

Contact The White Law Group for a Free Consultation

If you’ve experienced losses in Hartman Retail III, DST, contact our experienced securities attorneys at 888-637-5510 to evaluate your case. We represent investors nationwide on a contingency fee basis—you don’t pay unless we recover money for you.

Visit www.whitesecuritieslaw.com to learn more.

Frequently Asked Questions (FAQs) – Hartman Retail III, DST

1. What is Hartman Retail III, DST?

It is a Delaware Statutory Trust formed in 2019 by Hartman Income REIT and its affiliates. It was marketed to accredited investors as a 1031 exchange investment through a Reg D offering.

2. Why are DSTs considered risky for investors?

DSTs are illiquid, non-traded, and generally inflexible investments with limited transparency and high commissions. These characteristics can be problematic for retirees or investors who need access to funds.

3. What makes a DST recommendation unsuitable?

If your broker failed to perform a proper suitability analysis or did not disclose the full risks, fees, and limitations, the recommendation may have been inappropriate.

4. How does FINRA arbitration help investors recover losses?

FINRA arbitration is a legal process that allows wronged investors to seek compensation without going to court. It’s typically faster and less formal than litigation.

5. What’s the deadline to file a claim?

Deadlines vary depending on the specific facts of the case. It’s important to speak with a lawyer as soon as possible to protect your rights.