Investigating Lawsuits involving NE1 UC DST (1031 DST Offering)
The White Law Group is investigating potential securities claims involving broker dealers who may have unsuitably recommended NE1 UC DST to investors.
What is NE1 UC DST?
NE1 UC DST, a private placement Delaware Statutory Trust (DST) investment, is purportedly sponsored by NewStar Exchange I, LLC. NewStar Exchange is a subsidiary of NewStar Asset Management that invests in and manages Class A multifamily and single family built-to-rent residential communities in growing suburban locations across the Sun Belt. The company reportedly filed a form D in 2023 to raise capital from investors for a project located in Atlanta, Georgia. The total offering amount was purportedly $10,139,514.
NE1 UC DST: High Risk and Limited Liquidity
Investing in private placement Delaware Statutory Trusts (DSTs) carries several risks, including limited liquidity, as these investments are typically long-term and difficult to sell.
There is also the potential for loss of principal due to market volatility or poor performance of the underlying real estate assets. Additionally, DSTs may have limited control for investors, as management decisions are often in the hands of a trustee, and tax benefits could be impacted if the investment fails to meet certain regulatory requirements.
Broker Due Diligence
Under the “Regulation best interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment. If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.
If your advisor unsuitably recommended a 1031 DST offering and you lost money, the securities attorneys at The White Law Group may be able to file a complaint for you. You may be able to recover losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Class Action Lawsuits vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class action lawsuits as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
Recovery of Investment Losses
If you are concerned about your investment losses in NE1 UC 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.
FINRA provides an arbitration forum for investors to resolve disputes. The White Law Group represents investors in FINRA arbitration claims throughout the country.
Last modified: March 19, 2025
