Justia Lawyer Rating
Super Lawyers - Rising Stars Kirk G. Smith
Super Lawyers Samuel B. Edwards
Super Lawyers William S. Shephard
Texas Bar Today Top 10 Blog Post
Avvo Rating. Samuel Edwards. Top Attorney
Lawyers Of Distinction 2018
Highly Recommended
Lawdragon 2022
AV Preeminent

Skyloft Austin Student Housing by Nelson Partners

What Is Skyloft Austin?

If you’re an investor who suffered losses after your broker recommended you invest in Skyloft Austin, you may be able to pursue damages for financial recovery. This luxury student housing building, close to the University of Texas, was marketed by property management firm Nelson Partners Student Housing in 2019. Skyloft investors each invested $100k to $500k.

This eighteen-story off-campus apartment development provides first-class amenities and views of Austin, TX. As with most real estate private placement deals, the appeal of this investment type was the expected regular dividends and a deferred tax on property sales for investors—many of them retail customers and retirees.

This tax benefit was why many brokers marketed the investment as a 1031 exchange deal. This arrangement was supposed to allow investors to defer capital gains tax payments on the property’s sale as long as proceeds were invested into a different property of the same or greater value.

Unfortunately, Skyloft Austin investors may now be owed up to $75m. Nelson Partners owner Patrick Nelson is accused of allegedly running a Ponzi-like scam and using proceeds from the 2019 deal to invest in other ventures while turning a profit. Besides that, hedge fund Axonic Capital, which provided millions to help finance Skyloft Austin, took over the project in 2020 after Nelson Partners defaulted on the loan. Axonic then sold the building.

Many Skyloft Austin investors sued Nelson Partners and Axonic. These investors are alleging the brokerage firms that marketed and sold them shares in this real estate private placement venture didn’t apprise them of the risks. They also contend that the firms and their financial advisors may have failed to conduct the proper due diligence when investigating the Axonic loan. Some brokers may have even misrepresented the nature of the loan.

Seasoned Real Estate Private Placement Law Firm

Our Texas broker misconduct lawyers are investigating claims of losses by Skyloft Austin investors. Many of these investors were unsuitably recommended and sold this investment when it was too risky, given their low to moderate risk tolerance levels or lack of investing experience. Contact us today if you would like to explore your legal options during a free, no-obligation case consultation.

Should You File a FINRA Arbitration Claim Against Your Broker-Dealer Over Your Skyloft Austin Losses?

Investors hope to get back $50m from Nelson Partners after a Texas state judge approved a preliminary settlement. There is also the $17.5m verdict they won in a separate lawsuit against Axonic. However, Nelson Partners and its owner have been having financial problems for a while, including bankruptcies at several properties. Axonic, meanwhile, is appealing the jury verdict. According to The New York Times, the hedge fund doesn’t expect to have to pay anything at all.

These are two reasons why you must file your own Financial Industry Regulatory Authority (FINRA) arbitration claim against the broker-dealer that marketed and sold Skyloft Austin to you as a suitable investment. As long as skilled broker negligence lawyers represent you, this type of investor case can maximize your chances of a full financial recovery.

Private Placements Are Unsuitable for Most Retail Investors

Private placements are considered illiquid, risky investments with limited transparency. They’re unsuitable for most conservative investors and retail customers. Why were brokers so quick to tout Skyloft Austin to their clients? One can only assume the high commission that comes with real estate private placement sales was an incentive.

Representing Skyloft Austin Investors in FINRA Arbitration

Our seasoned real estate private placement attorneys have fought for investors in FINRA arbitration, mediation, and litigation for over thirty years. We have recovered millions of dollars on behalf of thousands of clients.

FINRA arbitration allows investors to pursue damages directly from the brokerage firms whose due diligence failures, misrepresentations and omissions, poor recommendations, and other misconduct or negligence caused them financial harm. Call us at SSEK Law Firm today:

Client Reviews
★★★★★
"I am going to miss conversations with you, Sam Edwards. You’ve been a wonderful lawyer and a friend. I loved learning legal jargon from you. But, even more, it is your self-respect and commitment to your position that I admire and your persistent patience-your equanimity. With great appreciation, thank you!" M.B.
★★★★★
"My experience with Ryan Cook has been very positive. Through every step of the litigation he explained what to expect to happen. When I spoke with him later he reviewed the process. He was very patient, and I never felt rushed. I have already told friends how wonderful he is." L.R.
★★★★★
"I want you to know that I very much appreciate your expertise, hard work, and guidance that led to a satisfactory resolution with Raymond James. From our first meeting, I felt "heard" and that my situation and story were respected. Every subsequent interaction I had with any of you - in person, via email, or by phone - only corroborated that feeling. What great work you do on behalf of people like me who have been wronged, yet don't know how to navigate the appeals/mediation/arbitration process as you do. I will be forever grateful." M.L.
★★★★★
"Good positive experience. Guided us through a difficult process and was pleased with the outcome. Everyone I dealt with was exceptional." A.G.
★★★★★
"Good intelligent attorneys who never miss a beat. I set my expectations high, and they delivered above and beyond. Do not miss the opportunity to let SSEK represent you. Top-notch, efficient and effective firm." S.M.
Contact Us
  1. 1 Free Consultation
  2. 2 No Recovery, No Fee
  3. 3 Over 100 Years Experience

Fill out the contact form or call us at (800) 259-9010 to schedule your free consultation.