The White Law Group Investigates Storage Units Income Fund II Lawsuit and Recovery Options for Investors
If you’re researching Storage Units Income Fund II complaints, here’s what’s on the record and what your options may be. The White Law Group is investigating potential securities lawsuits on behalf of investors who purchased interests in Storage Units Income Fund II, LLC, a non-traded Reg D private placement sponsored by Storage Units Capital. If you invested in this fund and have concerns about liquidity, risk disclosures, or how the investment was recommended to you, contact our FINRA arbitration attorneys today for a free consultation.
What Is Storage Units Income Fund II, LLC?
Storage Units Income Fund II, LLC is a Florida limited liability company formed in 2022 and headquartered in Maitland, Florida. According to its Form D filing with the SEC, the fund was organized to acquire and operate self-storage facilities.
The fund was offered under Rule 506(b) of Regulation D, sold only to accredited investors, with a $25 million target and a $50,000 minimum investment through broker-dealer Arete Wealth Management, LLC (CRD# 44856).
Broker Due Diligence Obligations
Before recommending a private placement like Storage Units Income Fund II, a broker-dealer has an independent duty to investigate the offering rather than rely on the sponsor’s marketing materials. That includes verifying the issuer’s financial condition, management background, and use of proceeds, and confirming the investment was suitable for each investor’s net worth, income, and liquidity needs. Because Reg D offerings aren’t reviewed by the SEC before they’re sold, this due diligence is often the only check on the investment before it reaches an investor.
Risks of Private Placement Investments
Interests in Storage Units Income Fund II are illiquid and unregistered, with no public market and no independent third-party valuation of the underlying real estate. Any preferred return is a target set by the sponsor, not a guarantee, and can be reduced or suspended if the fund underperforms. Investors are also concentrated in a single sponsor’s self-storage portfolio, with no diversification across managers or asset types.
Recovering Investment Losses
If Storage Units Income Fund II wasn’t a suitable investment for your financial situation, you may be able to recover your losses through FINRA arbitration.
Contact The White Law Group
The White Law Group is a national securities fraud attorneys with offices in Chicago and Seattle. If you invested in Storage Units Income Fund II and have questions about your options, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. How do I file a claim to recover money invested in Storage Units Income Fund II?
Investors typically purchased fund interests through a broker-dealer, such as Arete Wealth Management. Most brokerage account agreements typically include a pre-dispute arbitration clause, so claims against the firm are generally filed and resolved through FINRA arbitration rather than court, and arbitration can still result in a monetary recovery.
2. What makes a Reg D private placement risky compared to other investments?
Storage Units Income Fund II is an illiquid, unregistered security with no secondary market, so investors can be locked in for years with no way to sell early. Any preferred return is a target, not a guarantee, and depends entirely on the sponsor’s real estate performance.
3. Can the brokerage firm be held responsible for my losses, even if it didn’t manage the fund itself?
Yes. Broker-dealers have a duty to supervise their representatives and verify that a private placement is suitable for each investor before recommending it. A firm that failed to do so may be liable for failing to supervise, regardless of how the underlying fund performs.
