Inland
Private Capital / Naperville Multifamily DST investor losses

Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers,
is investigating investor losses in Delaware Statutory Trust programs
sponsored by Inland Private Capital Corporation, including the
Naperville Multifamily DST. We are former Wall Street defense attorneys
who now use that insider knowledge to help investors recover losses
caused by unsuitable recommendations, incomplete due diligence, and
sponsor misconduct.

Inland Private
Capital Corporation: background

Inland Private Capital Corporation is one of the largest DST sponsors
in the United States, having sponsored numerous 1031 exchange programs
across multiple property types. Inland also operates a large non-traded
REIT platform. The firm’s scale and brand recognition made its DST
offerings a common recommendation by broker-dealers advising 1031
exchange investors.

However, size and name recognition do not guarantee performance. Law
firms are currently investigating the suitability of broker
recommendations for Inland Private Capital DST programs, including the
Naperville Multifamily DST, amid concerns about projected returns, fee
structures, and risk disclosures.

Inland
Private Capital programs under investigation

Program	Status	What investors reported
Naperville Multifamily DST	Under investigation	Law firms investigating suitability of broker recommendations
Other Inland Private Capital DST programs	Under investigation	Valuation concerns; non-traded REIT platform also under scrutiny

Why the
Naperville Multifamily DST drew scrutiny

DST programs that invest in multifamily properties can be affected by
local market conditions, property management quality, debt structure,
and tax reassessment. The Naperville Multifamily DST is under
investigation for several concerns:

• Whether the projected returns were realistic given local market
  conditions and property performance.
• Whether the fee structure was adequately disclosed to
  investors.
• Whether broker-dealers conducted sufficient due diligence before
  recommending the program.
• Whether the DST’s risk factors — including illiquidity, distribution
  risk, and sponsor dependence — were communicated to investors.

Inland Private
Capital’s broader risk profile

Inland Private Capital also operates a substantial non-traded REIT
platform. Non-traded REITs share many of the same risks as DSTs:
illiquidity, limited transparency, sponsor control, and potential
valuation concerns. When a sponsor manages both DST programs and
non-traded REITs, investors should be aware of potential conflicts of
interest and the sponsor’s overall financial health.

Risk factor	Why it matters	What to watch for
Illiquidity	No public market for DST interests; limited secondary market	Investors may be unable to exit for 5–10 years
Fee structure	Multiple layers of fees can erode returns	Sponsor fees, acquisition fees, dealer concessions, asset management fees
Sponsor dependence	Investors have no voting rights or management control	Performance depends entirely on sponsor decisions
Distribution risk	Distributions are not guaranteed and can be suspended	Cash-flow problems, tax reassessments, or property distress can halt income
Valuation concerns	Non-traded REITs and DSTs may report stale or inflated values	NAV may not reflect current market conditions

Broker-dealer
due diligence failures in Inland Private Capital cases

Broker-dealers that recommended Inland Private Capital DST programs
were required to conduct reasonable due diligence under FINRA rules. Our
investigation has identified recurring failures:

Failure	What went wrong	Investor harm
Overreliance on sponsor brand	Broker assumed Inland’s size guaranteed quality	Due diligence was superficial; risks were not independently verified
Inadequate fee disclosure	Multiple fee layers were not fully explained	Returns were eroded by costs investors did not understand
Poor suitability analysis	Investors who needed liquidity were placed in long-hold DSTs	Investors could not access funds when needed
Insufficient risk disclosure	Marketing emphasized 1031 benefits while understating illiquidity and distribution risk	Investors entered DSTs without understanding the full risk profile

What Inland
Private Capital DST investors can do

Investors who lost money in an Inland Private Capital DST — including
the Naperville Multifamily DST — may have claims against the
broker-dealer that recommended the investment. Because this matter is
under investigation, specific claims have not been finally
adjudicated.

The strongest potential claims involve:

• The investor needed liquidity and income, but was placed in a
  long-hold, illiquid DST.
• The broker did not adequately disclose the fee structure or
  distribution risk.
• The broker failed to conduct independent due diligence beyond the
  sponsor’s own materials.
• Marketing materials overestimated returns while understating
  risks.

Recovery options

Forum	Typical defendants	Common claims
FINRA arbitration	Selling broker-dealer and registered representative	Unsuitable recommendation, misrepresentation, omission, failure to supervise
Civil litigation	DST sponsor, trustee, or affiliates	Fraud, breach of fiduciary duty, breach of offering documents

Non-traded
REIT and DST sponsor risk: what investors should understand

Inland Private Capital’s dual role as a DST sponsor and a non-traded
REIT sponsor raises additional concerns for investors. When a sponsor
manages both types of illiquid alternative investments, conflicts of
interest can arise:

• Cross-entity management fees. A sponsor that
  manages both DSTs and non-traded REITs may receive management fees from
  multiple sources, creating incentives that may not align with investor
  interests.
• Valuation concerns. Non-traded REITs and DSTs both
  report valuations that may not reflect current market conditions. Stale
  or inflated valuations can give investors a misleading picture of their
  holdings.
• Liquidity mismatches. Both non-traded REITs and
  DSTs are illiquid. Investors who hold both may find that they cannot
  access capital from either investment when needed.
• Concentration risk. Investors who are advised to
  hold multiple products from the same sponsor family may be more
  concentrated than they realize.

Questions
to ask before investing in a DST from a large sponsor

Question	Why it matters	Red flag
What is the sponsor’s track record with prior DST programs?	Prior performance may indicate future management quality	Prior programs that halted distributions or underperformed
What fees does the sponsor charge?	Fees reduce the amount invested in the property	Multiple layered fees that are not clearly disclosed
Does the sponsor manage both DSTs and non-traded REITs?	Dual management can create conflicts of interest	Sponsor receives fees from both product types
What is the property’s current occupancy and financial performance?	Occupancy and cash flow determine distribution sustainability	Occupancy below projections or declining cash flow
What happens if distributions stop?	Investors need to understand distribution suspension risk	PPM allows suspension without investor consent

Contact Investment Fraud
Lawyers

Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers,
has recovered losses for investors across the country. We work on a
contingency fee basis: no recovery, no fee. We review each case at no
cost and determine whether the broker, sponsor, or both may be
liable.

If you lost money in an Inland Private Capital DST, call us at
1-888-885-7162 or use our confidential contact form. We
will review your brokerage statements, offering documents, and
communications to identify whether your losses were avoidable.

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Legal disclaimer: Past results do not guarantee
future outcomes. Every case is unique, and recovery depends on the
specific facts, applicable law, and available defendants.

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