NB Stadium View DST: Recovery of Investment Losses

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended NB Stadium View DST to investors.

NB Stadium View DST, sponsored by Nelson Partners Student Housing, is a Student Housing community complex near Montana State University, built in 2017. Nelson Partners has reportedly been the subject of several lawsuits, foreclosures, and bankruptcies in connection with other student housing properties.

Nelson Partners reportedly filed a Form D to raise capital from investors in 2016. The total offering amount sold to investors was purportedly $6,264,062. The sales commissions and fees are estimated as 10% of the total offering amount, according to the filings.

1031 DST Investments- Complex Investment Products

While there is a time and place for most investments, DSTs are not appropriate for many investors as they come with a few disadvantages.  For example, 1031 DSTs cannot raise new capital once the investment is made leaving investors holding the bag if expensive repairs are needed or other issues arise – like a drop in occupancy or rental income.

The investors also have limited control over the property.  While the sponsor may welcome feedback from the investors in the DST, they don’t allow any actions to be taken by any one investor.

Additionally, 1031 DSTs are illiquid, and it can often be difficult to find a buyer if an investor wants to sell their interest before the property is sold.

Investigating Potential Claims – NB Stadium View DST

The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk 1031 DST investments to investors.

Despite the risks of investing in 1031 DSTs, brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.

Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.

Broker Due Diligence 

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor considering that investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. 

Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim. 

Free Consultation with a Securities Attorney

If you are concerned about your investment in the NB Stadium View DST, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington The firm works on a contingency fee basis and may be able to represent you in a complaint against your brokerage firm.