Southern Star Self Storage-Airports DST: Securities Investigation 

Southern Star Self Storage-Airports DST: Investor Lawsuit Investigation

Are you concerned about your investment in Southern Star Self Storage-Airports DST? The White Law Group is currently investigating potential FINRA arbitration claims involving brokerage firms that may have improperly recommended this high-risk 1031 DST investment to retail investors.

What is Southern Star Self Storage-Airports DST?

Southern Star Self Storage-Airports DST is a Delaware Statutory Trust (DST) investment offering launched in 2022 by Southern Star Self Storage. The DST was created to acquire, manage, and operate self-storage facilities located near airports, with the intent of generating passive income for investors—primarily those completing a 1031 exchange.

As with other DSTs, the investment is structured to provide potential tax deferral benefits and monthly distributions, although it is illiquid and subject to significant market and operational risks.

Distributions Suspended in 2024

According to recent reports, Southern Star DSTs suspended investor distributions in 2024. As of 2025, it remains unclear whether those distributions have resumed.

Suspended distributions may suggest underlying financial or operational difficulties with the DST offering, such as property vacancies, management issues, or broader market shifts. This situation underscores a common risk associated with real estate-based private placements, particularly those structured for 1031 exchange purposes. Because these investments depend on rental income and long-term appreciation, any disruption—such as property damage, tenant defaults, or economic downturns—can severely affect investor returns.

Securities Investigation: Southern Star Self Storage-Airports DST

According to SEC filings, Southern Star Self Storage-Airports DST filed a Form D in 2022 to raise approximately $24,150,000 from investors.

The White Law Group is investigating whether brokerage firms may be liable for recommending this speculative DST investment without fully disclosing the risks.

Illiquid Investment: Risks of Southern Star DST

• Illiquidity: Investors cannot sell or redeem their interest until the property is sold and the DST terminates—often 7 to 10 years later.
• No Control: Investors have no say in the management or sale of the property.
• No Capital Raises: DSTs are unable to raise new funds post-offering. If costly repairs or economic hardships arise, investors may see significant losses.
• High Commissions: Brokers often earn high upfront fees for selling DSTs, sometimes prioritizing commissions over client suitability.

These features make DSTs unsuitable for many conservative or income-dependent investors.

The White Law Group’s Southern Star DST Investigations

The White Law Group is investigating claims related to the following Southern Star DSTs:

• Southern Star Self Storage–Montrose II DST
• Southern Star Self Storage–Carolinas DST
• Southern Star Self Storage–Airports DST
• Southern Star Storage III Carolina DST

To learn more, visit our 1031 DST Investments Overview.

Broker Due Diligence

FINRA-registered broker-dealers are obligated to conduct reasonable due diligence on all investment offerings and ensure that each recommendation is suitable based on an investor’s age, risk tolerance, financial needs, and objectives. Failure to meet this standard may expose firms to liability for investment losses through FINRA arbitration.

Free Consultation with a Securities Attorney

If you suffered losses investing in Southern Star Self Storage-Airports DST, please call the securities attorneys at The White Law Group at 888-637-5510zf for a free consultation.

With offices in Chicago, IL and Seattle, WA, our firm has represented investors across the country in more than 800 FINRA arbitration cases since 2010. We help clients recover investment losses related to:

• Broker fraud and misrepresentation
• Unsuitable investment recommendations
• Churning and excessive trading
• Unauthorized transactions
• Selling away and private placement losses

Let our 30+ years of securities law experience work for you.

Frequently Asked Questions (FAQs)

1. Why were distributions suspended for Southern Star Self Storage DSTs?

Distributions were reportedly suspended in 2024 due to possible financial or operational issues with the underlying properties or the trust itself. These types of disruptions are not uncommon with DST investments, particularly when market conditions change or occupancy levels decline.

2. Can I recover losses from my Southern Star Self Storage-Airports DST investment?

 Possibly. If your financial advisor recommended the investment without properly explaining the risks or failed to perform adequate due diligence, you may be eligible to file a FINRA arbitration claim to pursue recovery of your losses.

3. Are 1031 DST investments safe for retirement accounts?

While 1031 DSTs offer potential tax deferral benefits, they are generally illiquid and high-risk, making them unsuitable for many conservative or income-reliant investors, including retirees. It’s important that brokers assess whether these investments align with a client’s financial goals before making a recommendation.