Investor Lawsuit Investigation – Inspired Senior Living of Cinnaminson DST
The White Law Group is investigating potential claims involving financial advisors who recommended Inspired Senior Living of Cinnaminson DST, a Regulation D private placement investment sponsored by Inspired Healthcare Capital.
According to a recent Form D filing with the SEC, the issuer began selling interests in May 2025 with a goal of raising over $46.6 million from investors nationwide. The DST offering was sold through broker-dealer Emerson Equity LLC, CRD#: 130032.
Although these offerings may be pitched as suitable for 1031 exchange transactions and long-term income, they often involve substantial risk and limited liquidity.
Investment Details – Inspired Senior Living of Cinnaminson DST
- Total Offering Amount: $46,630,263
- Total Sold (as of filing): $1,712,041
- Total Remaining: $44,918,222
- Sales Commissions & Fees: Estimated $4,196,723
- Payments to Sponsor: $466,303
- Securities Offered: Equity interests in a Delaware Statutory Trust
- Minimum Investment: Not specified
The disclosure outlines multiple layers of commissions and dealer fees totaling over 9% of the offering, plus a separate payment to the sponsor for marketing and offering expenses.
Investor Risks with DSTs
Despite their popularity for 1031 exchanges, Delaware Statutory Trusts (DSTs) carry significant risks that may not be fully disclosed:
- High Upfront Costs: Sales commissions, due diligence allowances, and wholesaling fees reduce the net investment in real estate assets.
- Illiquidity: Investors are typically locked into the trust for 7–10 years with no secondary market.
- Sponsor and Property Risk: The success of the investment depends heavily on the property’s performance and the sponsor’s execution.
- Conflict of Interest: Brokers and sponsors often earn fees regardless of investment outcomes.
- Suitability Red Flags: These products may be unsuitable for conservative or income-dependent investors.
Recovery Options Through FINRA Arbitration
If you were misled about the risks of Inspired Senior Living of Cinnaminson DST, or if your financial advisor failed to perform proper due diligence, you may be able to pursue recovery through FINRA arbitration.
FINRA holds brokerage firms accountable when their representatives breach fiduciary duty, fail to disclose conflicts, or recommend unsuitable investments. Claims can often be pursued even if the investment has not yet failed.
Speak with a Securities Fraud Attorney
The White Law Group has extensive experience representing investors in claims against brokerage firms related to DSTs and other private placements.
If you invested in Inspired Senior Living of Cinnaminson DST and have concerns, contact us today at 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.
FAQs
1. Why are DST investments considered high risk?
DSTs often involve illiquid, long-term investments with high fees and significant dependence on the sponsor and property performance.
2. Can I sell my DST investment before the trust liquidates?
Typically, there is no secondary market for DST interests, meaning investors are usually required to hold the investment until liquidation.
3. What are my legal options if I was misled?
You may be eligible to pursue a claim through FINRA arbitration if your advisor failed to disclose the
Last modified: July 29, 2025
