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:
Soreide Law Group is investigating potential investor claims involving Cambridge Investment Research Inc. after FINRA sanctioned the firm for supervisory failures involving deferred variable annuity exchanges. Investors who incurred surrender charges or other losses in connection with deferred variable annuity exchanges recommended through Cambridge should review FINRA’s enforcement action against the firm below. What Are […]
Investors potentially experienced sales practice violations by securities broker Hector Crespo Jr. (also known as Harrison Crespo Jr.) [CRD: 3015246, Melville, New York], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Crespo has worked for Aegis Capital Corp. in Melville, New York, since June 21, 2011, as a securities broker and since June […]
Soreide Law Group is investigating potential investor claims involving J.P. Morgan Securities LLC (JPMS) after FINRA sanctioned the firm over supervisory failures involving a high-risk, leveraged investment strategy. Investors who suffered losses through this strategy may have legal options and should read below for details about FINRA's action against J.P. Morgan Securities. What Was The […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com