RK Pointe at East Shore DST – Investor Alert
Did your financial advisor recommend investing in RK Pointe at East Shore DST? The White Law Group is investigating whether brokerage firms may have unsuitably recommended this Delaware Statutory Trust (DST) to retail investors seeking 1031 exchange options. While DSTs are often marketed for tax deferral and “hands-off” income, they can be complex, high-risk, and inappropriate for many investors.
About the Offering (per SEC filings)
According to a Form D notice filed with the Securities and Exchange Commission, RK Pointe at East Shore DST is a Delaware Business Trust formed in 2021. Key details reported include:
- Total Offering Amount: $55,470,000
- Minimum Investment: $25,000
- Security Type: Equity; DST Beneficial Interests
- Industry: Real Estate – Commercial
- Exemption Claimed: Rule 506(b) of Regulation D
- Estimated Sales Commissions: $3,328,200
- Proceeds to Related Persons (estimated): $3,018,750
Promoters/Related Persons listed: Rance King Properties, Inc.
Placement/Compensation recipients listed include (among others): Rance King Securities Corporation (CRD 15737); Aurora Securities (CRD 46147); Nationwide Planning Associates (CRD 31029); Provident Wealth Advisors (CRD 157392); Metropolitan Capital Investment Banc (CRD 148820); RCX Capital Group (CRD 114290); Great Point Capital (CRD 114203); DAI Securities (CRD 36673); DFPG Investments (CRD 155576); Emerson Equity LLC (CRD 130032); Cabot Lodge Securities (CRD 159712); WealthForge Securities (CRD 152550); Patrick Capital Markets (CRD 16518); Center Street Securities (CRD 26898); Colorado Financial Service Corporation (CRD 104343); and several others.
Why DST Investments Can Be Risky
- Illiquidity: DST interests generally have no public market and can be difficult to sell before disposition.
- High Up-Front Costs: Commissions and offering expenses (often near or above ~9%) can materially reduce returns.
- No Investor Control: Investors typically cannot influence property management or key financial decisions.
- Capital Constraints: DSTs usually cannot raise new capital for unexpected repairs or cash needs.
- Concentration/Market Risk: Property-level issues (occupancy, rents, interest rates) can cut distributions and erode value.
Broker Duties and Suitability
Broker-dealers must comply with FINRA rules and Regulation Best Interest, including diligent due diligence on the product and ensuring recommendations fit each client’s objectives, risk tolerance, liquidity needs, and time horizon. Recommending complex, illiquid private placements to investors who need income stability or ready access to funds may be unsuitable. Firms that fail to supervise sales practices or adequately disclose risks may be liable for investor losses.
Can Investors Recover Losses?
Investors who suffered losses in RK Pointe at East Shore DST—or other DSTs—may be able to pursue claims against the selling brokerage firm through FINRA arbitration. Unlike class actions, FINRA arbitration allows investors to seek case-specific damages tied to unsuitable recommendations, misrepresentations/omissions, or failure to supervise.
National Securities Law Firm – Free Consultation
If you are concerned about your investment in RK Pointe at East Shore DST, call The White Law Group at (888) 637-5510 for a free consultation. We represent investors nationwide in FINRA arbitration involving alternative investments, private placements, and DSTs. With offices in Chicago, Illinois and Seattle, Washington, our firm focuses on helping investors recover losses from negligent brokerage firms.
Learn more at www.whitesecuritieslaw.com.
FAQs
What is RK Pointe at East Shore DST?
A Delaware Business Trust (formed 2021) offering beneficial interests in a commercial real estate DST via a Reg D Rule 506(b) private placement with a stated maximum of $55.47 million.
How much are the fees?
The filing discloses estimated sales commissions of approximately $3.33 million on the full raise, plus offering and other costs that can reduce net proceeds and investor returns.
How can I pursue recovery if I have losses?
You may be able to file a FINRA arbitration claim against the brokerage firm that recommended the DST, seeking damages for unsuitable advice, omissions, or failure to supervise.
