MANUFACTURING ESSENTIAL ASSET DST Investment Alert | Investors Face New Concerns

MANUFACTURING ESSENTIAL ASSET DST INVESTORS FACE NEW CONCERNS OVER HARVARD PROPERTY

Call 800-500-4442 if you invested in Manufacturing Essential Asset, DST and have concerns about your investment or the recommendations made by your broker or financial adviser.

Manufacturing Essential Asset, DST investors are facing significant new concerns after the sponsor reported that the tenant is no longer operating at the Harvard, Illinois property, the loan is in default, and foreclosure proceedings have begun.  

USMG No Longer Operating at the Property

The sponsor’s recent investor update states that USMG is not currently operating at the Harvard property.

The update also states that the loan is in default and the lender has commenced a foreclosure action. The sponsor says it is negotiating a workout with the lender and anticipates a capital call of approximately $10 million to fund property repairs, carrying costs and the workout.

Recent reporting by the Shaw Local/Northwest Herald also describes a $126.7 million foreclosure lawsuit involving the former Motorola property and reports that the building has been shut down.

Brokers Sold the Investment to Investors

Manufacturing Essential Asset, DST was offered as a 1031 exchange investment. CAI Investments sponsored the offering.

The SEC’s Form D filing estimated $20,397,171 in sales commissions on the $182.1 million offering.

For investors who purchased Manufacturing Essential Asset, DST through a broker-dealer or financial adviser, an important question is whether the investment was properly evaluated and recommended in light of the investor’s circumstances and objectives.

Investors may want to examine:

• What the broker told them about the property and tenant;
• What due diligence the broker-dealer performed;
• The property’s debt and financing;
• The risks associated with the tenant’s ability to perform under the lease;
• The fees and compensation paid in connection with the investment; and
• Whether the investment was suitable for the investor.

Goodman & Nekvasil, P.A. Represents Investors

Goodman & Nekvasil, P.A. is representing an investor who purchased Manufacturing Essential Asset, DST.

Our law firm is investigating claims involving the sale and recommendation of these investments by broker-dealers and financial advisers.

If you invested in Manufacturing Essential Asset, DST and are concerned about losses, the anticipated capital call, foreclosure or the circumstances surrounding the recommendation of the investment, contact Goodman & Nekvasil, P.A.

Call 800-500-4442 for a free consultation.

Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.

MANUFACTURING ESSENTIAL ASSET DST and the Risks of Alternative Investments

Many investors are not fully aware of the problems and risks associated with illiquid, high risk, alternative investments when they purchase them.  

Investments are often riskier and more complicated than traditional investments.  These funds are only suitable for high net worth, sophisticated investors.

Liquidity Issues and High Sales Commissions

Alternative investments can face several liquidity issues due to their unique characteristics and structure. 

Another problem often associated with alternative investments is the high sales commissions brokers typically earn for selling them. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.  

Unfortunately, in many cases, the high sales commission may influence unsuitable investment recommendations.  

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim. 

If you believe that your investments in MANUFACTURING ESSENTIAL ASSET DST may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.

Goodman & Nekvasil, P.A. has recovered more than $600 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from the SEC and FINRA on 9/16/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442