Frequently Asked Questions

Can I sell my member units?
The DBSI State Offices, LLC was formed as a private limited liability company. It is not publicly traded and does not currently have a secondary market in which to sell your member units.
If I find a buyer for my member units, can I sell them?
The DBSI State Offices, LLC fund was formed to accepted subscriptions from Qualified Investors who met a specified net worth criteria. In order for a private party to purchase your member units they must also meet the Qualified Investor net worth criteria. Please seek advice from a qualified investment advisor before attempting to do a sale transfer of your member units.
How long will I have to hold my member units before I can get any return of my investment?
The Board of Managers has determined that it is in the best interest of the membership to hold the fund’s commercial real estate assets until the markets improve. In 2010, the current values are approximately 40% below their highest valuation reached in 2006-2007. At this time, we are making no predictions as to when the markets will improve. Sovereign has been instructed to keep a watchful eye on the market and do a sales analysis at the first signs of marked improvement in the real estate markets which the assets are located.
How do I change the way I legally hold my interest in the fund?
Members have a need to change their ownership vesting for many different reasons. Some reasons include: death of a spouse; tax planning surrounding a Trust account; changing the custodian of their IRA account; etc. For more detailed information, go to the Certificates link on the home page.
When will I receive tax information regarding my investment?
Sovereign will prepare a K-1 partnership IRS form for your individual holdings in fund. These are prepared during the first quarter of the year for the previous 12 month period. You will need to present the K-1 information to your tax preparer.
Can I write off my entire investment in the fund since DBSI has filed for bankruptcy protection?
The DBSI State Offices, LLC fund in which you hold your member units is not a party to the DBSI bankruptcy proceedings. It is currently in possession of commercial real estate assets that are being operated for the benefit of its members. Although the net asset values of the real estate held has significantly decreased, it continues to represent significant value for the members. Sovereign performs a net asset value calculation on an annual basis which it reports to custodians who hold member units in their IRA custodial accounts. Consult with your tax advisor before electing to take any loss write-off on your taxes.
Is my Financial Planner receiving the same reports I receive?
Sovereign sends a copy of all reports to the financial planners that we have on record via email in advance of the reports arriving to the investors. If your financial planner is not receiving an electronic copy, please contact Sovereign’s Investor Relations department at (800) 861-5006 with your advisor’s contact information.
How do I get more information on how my investment is performing?
Contact Sovereign’s Investor Relations department at (800) 861-5006 between the hours of 9:00 am and 5:00 PM Pacific Time for answers to your specific questions.