If you invested in HZ Jefferson Square DST and are now facing unexpected financial losses, you may be able to recover those losses through a FINRA arbitration claim. The White Law Group is currently investigating potential claims involving this high-risk real estate investment.
What is HZ Jefferson Square DST?
HZ Jefferson Square DST is a Delaware Statutory Trust offering sponsored by The Corporation Trust Incorporated. It was designed for investors looking to complete a 1031 exchange, offering passive ownership in real estate. According to a 2022 SEC filing, the total offering amount exceeded $27 million.
Why DSTs May Not Be Right for You
Though 1031 DSTs offer potential tax benefits and income, they come with notable downsides:
· No additional capital funding allowed after the offering closes, even if urgent property expenses arise.
· No control or voting rights for individual investors, regardless of performance or property issues.
· Highly illiquid, making it difficult or impossible to sell your interest before the asset is sold.
These factors often make DSTs unsuitable for conservative or income-dependent investors.
Broker Responsibility in Recommending DSTs
Broker-dealers are legally obligated to ensure that any investment they recommend is suitable based on your individual financial goals, age, risk tolerance, and investment experience. They must also conduct thorough due diligence on all investment products.
If your broker failed to fully disclose the risks of HZ Jefferson Square DST or recommended it without assessing its suitability, they may be held liable for your losses through FINRA arbitration.
Pursuing a Claim through FINRA Arbitration
The Financial Industry Regulatory Authority (FINRA) provides a forum for resolving disputes between investors and their brokerage firms. Filing a FINRA arbitration claim may help you recover losses without the need for a lengthy court process.
The White Law Group has helped thousands of investors nationwide pursue FINRA claims involving unsuitable investments and securities fraud.
Talk to a Securities Fraud Attorney
If you’re concerned about your investment in HZ Jefferson Square DST, don’t wait. Call the securities attorneys at The White Law Group today at 888-637-5510 for a free, no-obligation consultation.
With offices in Chicago and Seattle, our firm focuses exclusively on representing investors in FINRA arbitration claims across the country. Visit whitesecuritieslaw.com to learn more about how we help investors recover their losses.
FAQs – HZ Jefferson Square DST
1. Is HZ Jefferson Square DST a safe long-term investment?
DSTs like HZ Jefferson Square are often marketed as low-risk, but they come with serious downsides such as illiquidity, lack of control, and high fees—making them unsuitable for many investors.
2. What are my options if I was misled about the risks?
If your broker misrepresented the risks or failed to conduct adequate due diligence, you may be eligible to file a FINRA arbitration claim to seek compensation for your losses.
3. Can I sue my financial advisor for recommending this investment?
Rather than a traditional lawsuit, most disputes with brokers are resolved through FINRA arbitration. This process is often faster and more cost-effective than litigation.
Last modified: May 29, 2025
