Epoch Fort Collins DST Investor Alert

Soreide Law Group is investigating potential investor claims involving sales practice violations by securities brokers and financial advisors in connection with Epoch Fort Collins DST. Epoch Fort Collins DST is a Delaware Statutory Trust real estate investment that was marketed primarily to investors completing 1031 exchanges and seeking passive income and tax deferral. Adverse information has emerged concerning the risks, structure, and suitability of this offering for certain investors, particularly those with conservative objectives or liquidity needs. The information below summarizes key facts and concerns investors should understand.

What Is Epoch Fort Collins DST?

Epoch Fort Collins DST is a private real estate investment sponsored by Valeo Groupe Americas and structured as a Delaware Statutory Trust. The issuer made the offering through a Regulation D private placement and did not register it with the SEC. Public filings indicate that the sponsor filed a Form D in 2021 with a total stated offering amount of $23,100,000. Like many DST offerings, this investment allowed accredited investors to reinvest proceeds from the sale of real property through a 1031 exchange into a passive ownership interest in a single, professionally managed commercial property in Fort Collins, Colorado. Investors generally do not have control over management decisions and must rely on the sponsor and property manager.

Concerns About Epoch Fort Collins DST

Epoch Fort Collins DST shares several risk characteristics common to DST investments that may raise red flags for investors. These offerings are highly illiquid, with no public trading market and limited options for early exit. Investor returns depend on the performance of a single underlying property, exposing investors to real estate market fluctuations, tenant vacancy, operational costs, and potential declines in property value. The issuer does not guarantee distributions and may reduce or suspend them if cash flow becomes insufficient. DSTs also rely on compliance with specific IRS requirements to maintain 1031 exchange eligibility, and adverse tax treatment could result in unexpected tax liabilities. In addition, DST offerings often involve high upfront fees, selling commissions, and ongoing management expenses, which can significantly reduce net returns to investors.

Potential Sales Practice Violations

The manner in which advisors recommended the Epoch Fort Collins DST may have contributed to investor losses. Potential sales practice violations include unsuitable recommendations to retirees or income-dependent investors, misrepresentations about risk, liquidity, or expected income, and failure to fully disclose fees, conflicts of interest, and the speculative nature of the investment. Financial professionals have a duty to ensure that recommended investments align with an investor’s financial situation, objectives, risk tolerance, and liquidity needs. Consequently, if firms fail to meet these duties, investors may pursue legal options, including filing a FINRA arbitration claim or seeking other remedies.

Did You Sustain Losses By Investing In Epoch Fort Collins DST?

Do you need clarification on any investment losses from investing in Epoch Fort Collins DST because of your financial advisor or securities broker? You can contact Soreide Law Group at (888) 760-6552 or online and talk with a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States. The firm takes cases on a contingency fee arrangement and advances all costs.