Apex South Creek DST Investor Alert

Soreide Law Group is investigating potential investor claims involving sales practice violations by securities brokers and financial advisors related to Apex South Creek DST. Apex South Creek DST is a Delaware Statutory Trust real estate investment that was marketed nationwide, frequently to investors completing Section 1031 exchanges, as a passive and income-oriented opportunity tied to a newly constructed multifamily property in Orlando, Florida. However, a growing body of adverse information has emerged that raises concerns about the investment’s risk profile, financial condition, and disclosures made to investors. The following sections outline key facts and reported issues investors should be aware of.

What Is Apex South Creek DST?

Apex South Creek DST is a Delaware Statutory Trust created to acquire and operate a Class A multifamily apartment community located at 3060 Southcreek Boulevard in Orlando, Florida. The offering was sponsored and managed by Versity Investments LLC, which later operated through affiliated entities associated with Crew Enterprises LLC. As a DST, the structure was intended to provide investors with passive ownership while meeting the requirements for potential tax deferral under Internal Revenue Code Section 1031. Investors generally relied on projected rental income, third-party financing, and sponsor oversight to generate ongoing cash distributions.

How Apex South Creek DST Was Marketed To Investors

The investment was commonly presented as a stable, income-producing real estate option, particularly suitable for 1031 exchange investors seeking to preserve capital and generate monthly income. DSTs such as Apex South Creek are often sold as long-term, illiquid investments where investors depend heavily on sponsor management, financing stability, and accurate disclosures. Many investors relied on their financial advisors or securities brokers to evaluate the risks, conduct due diligence, and determine whether the investment aligned with their financial goals.

Distribution Suspensions And Cash Flow Concerns

One of the most significant reported adverse developments is the suspension of investor distributions. Investors have reportedly stated that expected monthly payments were halted, undermining the income-focused premise of the investment. There have also been reports that earlier distributions may have been supported through sponsor-funded “yield enhancement” mechanisms rather than sustainable operating cash flow. Such practices, if present, may raise concerns about whether the property’s actual performance was sufficient to support the advertised income levels.

Loan Defaults And Financing Distress

Publicly reported court filings describe serious financing issues tied to Apex South Creek. These filings reportedly reference multiple loan maturity extensions, with the final extension pushing maturity to May 18, 2024. Allegations include that interest payments ceased after November 2023 and that the loan remained in default for months. The original loan principal has been reported at approximately $42 million, with outstanding principal alleged to be more than $34 million as of March 31, 2025, and total claimed amounts due exceeding $42 million. Lenders have reportedly obtained a judgment of roughly $47 million against a sponsor-affiliated guarantor entity and have also pursued claims against the project-level borrower.

Allegations Of Misuse Of Investor Funds

Beyond loan distress, litigation tied to the Apex South Creek investment and related offerings has reportedly included allegations that syndicated investor funds were diverted, commingled, or otherwise misused. These allegations suggest that capital raised from investors may not have been applied solely for its stated purpose. Such claims can be particularly concerning for investors because they relate directly to transparency, governance, and the integrity of the offering structure.

Trustee And Governance Disputes

Investors in Apex South Creek DST have reportedly initiated proceedings in the Delaware Court of Chancery seeking removal of the DST trustee. According to public descriptions, the petition alleges breach of fiduciary duty and gross negligence. Trustee removal actions in DST structures are uncommon and may indicate that investors believe governance failures materially harmed the trust and its beneficiaries.

Broader Sponsor-Related Litigation Patterns

Adverse information concerning Apex South Creek DST does not appear in isolation. Multiple other DSTs associated with the same sponsor-affiliated entities have reportedly been linked to lawsuits alleging similar issues, such as suspended distributions, reserve shortfalls, loan defaults, and alleged fund mismanagement. Investors may view these reported patterns as relevant when assessing whether adequate due diligence was conducted and whether material risks should have been disclosed earlier.

Potential Sales Practice Violations

Losses tied to Apex South Creek DST may involve sales practice misconduct. Common allegations in alternative investment cases include unsuitable recommendations of illiquid, high-risk products; misstatements about income stability; failure to disclose sponsor-related risks or financing issues; and inadequate discussion of conflicts of interest or high commissions. Investors who experienced such issues may have the right to pursue recovery through FINRA arbitration or other legal avenues.

Did You Sustain Losses By Investing In Apex South Creek DST?

Do you need clarification on any investment losses from investing in Apex South Creek DST because of your financial advisor or securities broker? You can contact Soreide Law Group at (888) 760-6552 or online and talk to a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the country. The firm works on a contingency fee basis and advances all costs.