Concerned About Your Investment in HZ Kirkwood DST?
If you have invested in HZ Kirkwood 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 HZ Kirkwood DST
HZ Kirkwood DST is a Delaware Statutory Trust sponsored by Hamilton Zanze. It was offered in 2022 for investors seeking to defer capital gains through a 1031 exchange. The offering reportedly raised more than $29.9 million, according to documents filed with the Securities and Exchange Commission (SEC).
While DSTs can offer tax benefits and passive income, they also present risks that may not be suitable for all investors—especially those looking for liquidity or low-risk options.
Key Risks of DST Investments Like HZ Kirkwood
Though DSTs are often pitched as stable real estate investments, they come with a number of downsides:
· Limited Liquidity – Investors typically cannot sell or exit before the trust’s lifecycle ends.
· No Management Input – DST investors usually have no control over decisions made about the property.
· No Ability to Raise Capital – If unexpected repairs or financial challenges arise, the DST cannot raise additional funds.
· High Upfront Costs – DSTs are frequently associated with high fees and sales commissions, often totaling between 6% and 10% of the purchase price.
Did Your Financial Advisor Misrepresent This Investment?
Brokerage firms are obligated to conduct thorough due diligence and only recommend investments that align with a client’s financial goals, experience, and risk tolerance. In some cases, brokers may have recommended HZ Kirkwood DST without fully disclosing its illiquidity, complexity, or high commission structure.
Investors who were not adequately informed or were unsuitably advised may have grounds to recover their losses.
Recovering Losses through FINRA Arbitration
If you believe that your financial advisor failed to explain the risks of HZ Kirkwood DST, you may be eligible to file a claim through FINRA arbitration. This process allows investors to seek compensation from brokerage firms for unsuitable investment recommendations, omissions, or failure to conduct proper due diligence.
The White Law Group has handled hundreds of FINRA arbitration claims involving high-risk investments such as DSTs, REITs, and private placements.
Contact The White Law Group for a Free Consultation
If you’ve lost money investing in HZ Kirkwood DST, contact our securities attorneys at 888-637-5510 to discuss your legal options. We represent investors nationwide and operate on a contingency fee basis—you don’t pay unless we recover funds on your behalf.
Our offices are located in Chicago, Illinois, and Franklin, Tennessee, and we are committed to helping investors across the country. Learn more at www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs)
1. What is the HZ Kirkwood DST investment?
It is a Delaware Statutory Trust created by Hamilton Zanze, offered to investors as a 1031 exchange option in 2022. It involved a pooled investment in multifamily real estate.
2. Why are DSTs considered risky for some investors?
DSTs are long-term, illiquid investments with limited flexibility, no control over operations, and high upfront fees. These characteristics may not be suitable for conservative or income-dependent investors.
3. What are signs that my investment was recommended inappropriately?
If your financial advisor didn’t assess your financial goals, risk tolerance, or fully disclose the limitations and risks, it could indicate an unsuitable recommendation.
4. What is FINRA arbitration and how can it help me?
FINRA arbitration is a dispute resolution process that allows investors to pursue claims against their brokerage firms. It’s generally faster and less formal than litigation and can result in financial recovery.
5. How long do I have to take legal action?
There are time limits to file claims, often depending on when the investor became aware of the potential wrongdoing. It’s important to consult an attorney as soon as possible to evaluate your situation.
Last modified: June 10, 2025
