NB Loft Vue DST Lawsuit Investigation
Are you worried about investment losses in NB Loft Vue DST? The White Law Group is investigating potential securities fraud claims involving this Delaware Statutory Trust (DST) and whether brokerage firms may have unsuitably recommended the investment to retail clients. If you purchased NB Loft Vue DST through a financial advisor and suffered losses, you may be able to recover your damages through a FINRA arbitration claim.
NB Loft Vue DST Bankruptcy
NB Loft Vue DST was sponsored by Nelson Partners Student Housing as part of a 1031 exchange program. According to SEC filings, including a Form D filed in 2017, the private placement reported a total offering amount of $8,485,280. Public records indicate that the DST filed for Chapter 11 bankruptcy protection on July 6, 2021.
Risks of Delaware Statutory Trusts
While marketed as tax-efficient 1031 exchange opportunities, DSTs carry significant risks. Common disadvantages include:
- Illiquidity: Investors may find it extremely difficult to sell their interest or exit the investment early.
- Lack of Control: Investors generally cannot make decisions regarding property management or capital needs.
- No Additional Capital Raising: If costly repairs are required, DSTs cannot raise new funds, leaving investors exposed.
Why Brokers Recommend DSTs
Despite these risks, brokers often recommend DST investments because of the high commissions involved—often exceeding 7–10%. Unfortunately, many investors are not fully informed of the potential downsides before investing.
Recovering Losses through FINRA Arbitration
If your financial advisor recommended NB Loft Vue DST without properly explaining the risks or ensuring suitability, you may be eligible to pursue recovery through FINRA arbitration. This dispute resolution process can hold brokerage firms accountable for losses caused by unsuitable recommendations.
Free Consultation with Securities Attorneys
If you are concerned about your investment in NB Loft Vue DST, please call The White Law Group at 888-637-5510 for a free consultation. Our firm is a national securities fraud, securities arbitration, and investor protection law practice with offices in Chicago, Illinois, and Seattle, Washington. We have handled over 800 FINRA arbitration claims across the country. Visit The White Law Group to learn more.
Frequently Asked Questions – NB Loft Vue DST
What is a Delaware Statutory Trust (DST)?
A DST is a legal entity often used in 1031 exchange transactions to hold title to real estate. While it offers certain tax advantages, it also limits investor control and flexibility.
Why did NB Loft Vue DST file for bankruptcy?
According to public filings, NB Loft Vue DST filed for Chapter 11 bankruptcy in 2021 due to financial difficulties. Investors may have suffered losses as a result of the reorganization.
How can I recover losses from a DST investment?
Investors who suffered losses in DST investments may be able to file a claim through FINRA arbitration against the brokerage firm that sold the investment. These claims often involve allegations of unsuitable recommendations or failure to disclose risks.
