Avistone DST 1031 Exchange, Securities Investigation
Are you concerned about your investment in Avistone DST 1031 Exchange? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Avistone is a commercial real estate investment firm specializing in the acquisition and operation of multi-tenant industrial and business parks nationwide, according to its website. Avistone reportedly owns and operates more than 2.5 million square feet of industrial space in California, Georgia, Ohio, Texas, and Florida.
Delaware Statutory Trusts, or DSTs, are an alternative for 1031 exchange investors seeking replacement properties, allegedly offering the potential for monthly income and diversification without any on-going landlord duties.
Risk Factors related to a 1031 Exchange
Property Value Loss – All real estate investments have the potential to lose value over time.
Tax Status Changes – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities.
Possibility of Foreclosure – All financed real estate investments have potential for foreclosure.
Illiquid Investments – 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions.
Fees/Expenses – Investors’ returns may be affected by the costs associated with the transaction. and may outweigh the tax benefits.
Investigating Potential Lawsuits
Avistone DST appears to offer the following 1031 exchange investments among potentially others:
AVISTONE CITYGATE S, LLC
Avistone Citygate, LLC
AVISTONE CRAMER CREEK S, LLC
AVISTONE CRAMER CREEK, LLC
AVISTONE DEARBORN S, LLC
AVISTONE DEARBORN, LLC CA
Avistone Gateway Oaks S, LLC
Avistone Gateway Oaks, LLC
Avistone Gateway, LLC
Avistone Industrial Property Fund I, LLC
Avistone North Highlands, LLC
Avistone Northgate III, LLC
Avistone Northgate, LLC
Avistone Northwest S, LLC
Avistone Northwest, LLC
Avistone Northwoods, LLC
AVISTONE PLEASANTDALE, LLC
AVISTONE PRESIDENTS S, LLC
AVISTONE PRESIDENTS, LLC
AVISTONE TAMPA FLEX S, LLC
AVISTONE TAMPA FLEX, LLC
AVISTONE TULLER S, LLC
AVISTONE TULLER, LLC
Avistone West Tech, LLC
Despite the risks of investing in DSTs, The White Law Group has seen a number of instances where brokerage firms continue to push this type of investment because of the high commissions associated with their sale and creation.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve disputes if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment. It is possible that they could be found liable for investment losses in a FINRA arbitration claim.
Free Consultation with a Securities Attorney
If you are concerned about your investment in a Avistone DST 1031 Exchange, please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.