InCommercial Net Lease DST 4 Distributions Halted – Investor Options
The White Law Group is investigating potential claims on behalf of investors in InCommercial Net Lease DST 4, a Delaware statutory trust sponsored by InCommercial Property Group. According to recent correspondence from the sponsor, the investment has reportedly stopped paying distributions as of September 2, 2025, due to a lender-triggered cash sweep after Walgreens ceased operations at two properties in the portfolio.
Investor Letter – September 2, 2025
In a letter to investors, InCommercial CEO allegedly explained that while the portfolio maintains 100% lease compliance and rent collection, Walgreens has closed one location in Potsdam, NY and subleased another in Chicopee, MA to Family Dollar. Because Walgreens accounts for approximately 34% of the DST’s portfolio, these closures triggered a cash management provision with the lender.
This provision apparently requires all excess cash to be held in a lender-controlled reserve account for potential re-tenanting expenses, effectively suspending distributions. Although rents are still being collected, investors were purportedly advised that they will not receive distributions until the issue is resolved. InCommercial reportedly indicated it intends to sell the two affected properties in order to restore payments.
“As a result, all distributions are immediately and indefinitely suspended while we work to resolve the matter – likely via a sale of the two properties… We believe the best step forward is to sell both properties ahead of the rest of the portfolio so that distributions may resume.” – InCommercial Investor Letter, September 2, 2025
About InCommercial Net Lease DST 4
According to its SEC Form D filing, InCommercial Net Lease DST 4 was formed in 2021 in Delaware. The trust sought to raise up to $31,888,000 from investors through a private placement offering under Rule 506(b) of Regulation D. The minimum investment was $25,000.
- Issuer: InCommercial Net Lease DST 4
- Sponsor/Manager: InCommercial Net Lease Manager 4, LLC
- Executive Officer: Erik Conrad, CEO
- Total Offering: $31,888,000
- Sales Commissions: $3,029,360 (estimated)
- Use of Proceeds: Estimated $6.6 million to sponsors/managers
- Selling Broker-Dealer: Orchard Securities, LLC (CRD#: 133378)
Risks for Investors
Like many DST investments, InCommercial Net Lease DST 4 carries significant risks:
- Illiquidity: DSTs are highly illiquid, with no secondary market for resale.
- Tenant Concentration: Dependence on a single tenant such as Walgreens can create outsized exposure to closures or subleases.
- Cash Sweep Provisions: Lenders can restrict distributions to investors if performance triggers are breached.
- High Fees: Commissions and offering costs reduce potential returns.
Recovery Options for Investors
Brokers and financial advisors are required to ensure that recommendations of DSTs and private placements are suitable based on each client’s financial needs and objectives. If a brokerage firm failed to perform adequate due diligence on InCommercial Net Lease DST 4 before recommending it, investors may have a claim for recovery of losses.
These claims are often pursued through FINRA arbitration, which can be a more efficient and cost-effective avenue compared to traditional litigation or class actions.
Free Consultation with Securities Attorneys
If you invested in InCommercial Net Lease DST 4 and have experienced suspended distributions or financial losses, The White Law Group may be able to help you recover your investment.
Call our offices at (888) 637-5510 for a free, no-obligation consultation with a securities attorney. For more information, please visit www.whitesecuritieslaw.com.
FAQs – InCommercial Net Lease DST
What happened to InCommercial Net Lease DST 4?
Distributions were suspended on September 2, 2025, after Walgreens closures triggered a lender cash sweep provision.
Can I sell my interest in this DST?
DSTs are illiquid investments, meaning there is no secondary market for resale. Exiting typically requires a sponsor-led liquidation or sale.
Do I have legal options if my broker recommended this investment?
Yes. If your broker recommended InCommercial Net Lease DST 4 without properly disclosing the risks, you may be able to pursue recovery through FINRA arbitration.
