Investigating Claims involving LTL Royal Palms-Baton Rouge DST
The White Law Group is investigating potential securities claims involving broker-dealers that recommended investments in LTL Royal Palms-Baton Rouge, DST, a Delaware Statutory Trust formed in 2022. According to a Form D filed with the Securities and Exchange Commission, the offering seeks to raise approximately $22.8 million through a Regulation D Rule 506(b) exemption.
About the Offering
The Form D filing indicates that LTL Royal Palms-Baton Rouge, DST is a real estate investment structured as a Delaware Statutory Trust. The issuer’s principal place of business is located in Mission Viejo, California. Key details from the filing include:
- Total Offering Amount: $22,885,865
- Minimum Investment: $100,000
- Sales Commissions: Estimated $2,174,157
- Estimated Proceeds to Executive Officers/Promoters: $643,288
- Broker-Dealer: Ni Advisors, Inc. (CRD#: 134502), Milpitas, California
Risks of DST Investments
Delaware Statutory Trusts (DSTs) are often marketed to investors seeking 1031 exchange opportunities. While these products may provide tax deferral benefits, they also carry significant risks, including:
- Illiquidity – Investors typically cannot sell or redeem interests before the trust is dissolved.
- High Commissions – As disclosed here, commissions can exceed 9% of the total offering.
- Concentration Risk – Investors may be overexposed to a single real estate asset or geographic location.
- Lack of Transparency – Limited disclosures compared to publicly traded investments.
Broker Duties and Potential Claims
Broker-dealers recommending DSTs are required to ensure that the investments are suitable for their clients in light of the investors’ age, net worth, income, investment experience, and risk tolerance. Unsuitable sales may give rise to claims for recovery of investment losses through FINRA arbitration.
FINRA Arbitration vs. Class Action
Investors who suffered financial losses in LTL Royal Palms-Baton Rouge, DST may have recovery options through individual FINRA arbitration claims against the brokerage firms that sold the investments. These claims are typically handled on a case-by-case basis and differ from class action lawsuits, which may not fully address individual investor losses.
Free Consultation with a Securities Attorney
If you invested in LTL Royal Palms-Baton Rouge, DST or another DST offering and are concerned about your losses, the securities attorneys at The White Law Group may be able to help. Please call (888) 637-5510 for a free consultation or visit our website at www.whitesecuritieslaw.com.
FAQs
What is LTL Royal Palms-Baton Rouge, DST?
It is a Delaware Statutory Trust formed in 2022 that filed a $22.8 million Regulation D offering with the SEC.
What are the risks of investing in a DST?
DSTs are high-risk, illiquid investments with high commissions, lack of liquidity, and exposure to single-asset risks.
How can investors recover losses from DSTs?
Investors may be able to file individual claims against the broker-dealers that recommended the DST through FINRA arbitration.
