Many investors were sold Delaware Statutory Trusts (DSTs) as “safe” passive real estate investments or as part of a 1031 exchange strategy. In reality, thousands of investors are now facing suspended distributions, collapsing property values, and complete illiquidity, leading to significant Delaware Statutory Trust losses for many.
If your financial advisor recommended a DST that is now failing, you may have legal options to recover losses.
A Delaware Statutory Trust is a legal structure used to hold commercial real estate. Investors purchase “beneficial interests” in the trust, which owns properties such as:
DSTs are often marketed as:
However, DSTs are private securities, not publicly traded, and carry significant hidden risks.
DSTs typically have no secondary market. Investors cannot easily sell their interests and may be locked in for 5–10 years or longer, even if the investment collapses. We are investigating Delaware Statutory Trust losses.
Investors have no voting rights over major decisions. The sponsor controls refinancing, leasing, capital spending, and when or if the property is sold.
Returns depend entirely on the sponsor’s competence and honesty. Many DST sponsors:
Most DSTs own one property or one small portfolio, exposing investors to massive losses from:
Many DSTs used adjustable-rate or short-term debt. Rising interest rates have crushed valuations and made refinancing impossible, forcing distressed sales.
Projected income is not guaranteed. Many investors experience:
Sponsors collect:
Even failing DSTs often continue charging fees while investors lose money.
If a DST fails, investors can lose both:
If your advisor recommended a DST that is now suspended, bankrupt, or dramatically underperforming, the investment may have been:
These cases are often pursued through FINRA arbitration for:
Soreide Law is actively investigating and pursuing claims involving:
Including student housing DSTs such as:
Vintage, The Walk, The Element, Campus Walk, Wolf Run, 345 Flats, and others.
Yes — in many cases investors can pursue Delaware Statutory Trust loss recovery through:
Financial advisors and brokerage firms are often legally responsible for unsuitable DST recommendations.
If you were sold a DST that is now failing:
Call: 888-760-6552
Soreide Law handles DST cases nationwide and currently has dozens of DST claims pending. There is:
Investors potentially experienced sales practice violations by securities broker Russell Glenn Bedore [CRD: 4729849, Deerfield Beach, Florida], according to information disclosed through Financial Industry Regulatory Authority (FINRA) BrokerCheck. Bedore has been registered with LPL Financial LLC since May 14, 2026, and previously worked for J.P. Morgan Securities LLC from July 15, 2013, through May 15, […]
Investors might have sustained losses due to securities broker Matthew James Kloos [CRD: 7292988, Monroeville, Pennsylvania], based on public information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Matthew Kloos worked for Cetera Investment Services LLC from February 21, 2024, to April 23, 2026, and previously worked for Mutual of Omaha Investor Services Inc. from August […]
Investors potentially experienced sales practice violations by securities broker Melissa Star Williams (also known as Melissa Star Bortfeld, Melissa Starr Williams, Melissa Williams Frasca) [CRD: 4298503, Spokane, Washington], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Williams worked for Centaurus Financial Inc. from August 28, 2015, through March 14, 2024, before registering with […]
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