Melrose II S TIC, LLC – TIC Investment Losses

Melrose II S TIC, LLC Investor Lawsuit Investigation

The White Law Group is investigating potential securities claims involving investments in Melrose II S TIC, LLC, a tenant-in-common (TIC) real estate offering, for the purpose of recovery of investment losses.

According to a Form D filed with the SEC, Melrose II S TIC, LLC is a Delaware limited liability company formed in 2021. The issuer’s principal office is located in Salt Lake City, Utah, and the offering sought to raise approximately $6.1 million in equity through the sale of TIC securities, with aminimum investment of $452,442. The sales efforts were conducted by Orchard Securities, LLC, a FINRA-registered broker-dealer.

Understanding Melrose II S TIC Investments

TIC (Tenant-in-Common) investments are a form of real estate ownership in which multiple investors hold an undivided fractional interest in a property. These offerings are often used in 1031 exchanges, allowing investors to defer capital gains taxes. While they may seem like attractive opportunities for income and tax deferral, TICs are high-risk, illiquid, and complex investments—typically only suitable for sophisticated investors who can afford to lose their principal.

Investors in TICs, like Melrose II S TIC, LLC, are often exposed to risks including:

• Illiquidity – There is generally no secondary market for TICs, making it difficult to exit the investment.

• Lack of control – Investors typically have no decision-making authority regarding property management or sale.

• Concentration risk – TIC investments are often concentrated in a single property, increasing exposure to localized market downturns or property-specific issues.

• High fees – Offerings frequently include high upfront commissions and costs, such as the estimated $357,261 in sales commissions reported in this offering.

Broker Due Diligence Requirements

Broker-dealers who sell private placements like Melrose II S TIC, LLC are required to perform reasonable due diligence to ensure the investments are suitable for their clients. This includes evaluating the:

• Financial condition and investment objectives of the client

• Risk profile and complexity of the offering

• Background and track record of the sponsor and promoters

• Fee structure and offering documents

If a broker-dealer fails to conduct adequate due diligence or misrepresents the risks of a TIC investment, they may be held liable for losses through FINRA arbitration.

Recovery of Investment Losses

If you invested in Melrose II S TIC, LLC at the recommendation of your financial advisor and are concerned about your investment, you may be able to recover losses through FINRA arbitration. The White Law Group has handled hundreds of FINRA arbitration cases involving unsuitable TIC investments, and we continue to investigate claims against broker-dealers that improperly recommend such high-risk offerings.

Frequently Asked Questions – Melrose II S TIC 

1. What is a Tenant-in-Common (TIC) investment?

A TIC investment is a form of real estate ownership in which multiple investors hold undivided fractional interests in the same property. These are often marketed for 1031 exchanges but carry significant risk and lack liquidity.

2. How can I recover losses from a TIC investment like this ?

If your broker-dealer failed to perform due diligence or recommended the investment despite it being unsuitable for your financial situation, you may be eligible to file a claim through FINRA Dispute Resolution.

3. What fees are associated with TIC offerings?

TIC investments often involve high upfront fees and commissions. In this offering, for example, sales commissions were estimated at $357,261, cutting into investor returns.

Free Consultation

If you are concerned about your investment in Melrose II S TIC, LLC or another TIC private placement, call The White Law Group at 888-637-5510 or https://whitesecuritieslaw.com/ for a free consultation. We may be able to help you recover your losses through FINRA arbitration on a contingency fee basis.