Investigating Potential Claims involving CS1031 Retreat at Arden Farms Apartments, DST
The White Law Group is investigating potential securities claims involving the sale of CS1031 Retreat at Arden Farms Apartments, DST, a Delaware statutory trust (DST) offering sponsored by Capital Square Realty Advisors, LLC.
According to SEC filings, CS1031 Retreat at Arden Farms Apartments, DST filed a Form D to raise $68,000,000 in 2022 under Rule 506(c) of Regulation D, an exemption that allows for general solicitation of accredited investors. The minimum investment in this offering was $50,000. WealthForge Securities, LLC served as the placement agent and was estimated to receive approximately $5.78 million in sales commissions.
DSTs like CS1031 Retreat at Arden Farms are often marketed to retail investors as a 1031 exchange vehicle offering passive income and tax deferral. However, these types of investments carry significant risks, including a lack of liquidity, high fees, and potential for loss of principal.
Risk Factors with DST Investments
DSTs are complex, high-risk alternative investments generally suitable only for accredited investors who understand the specific risks, which may include:
- Illiquidity: Investors may be unable to sell or exit the investment prior to the trust’s liquidation.
- High Commissions and Fees: The upfront costs can be substantial, which may reduce total return potential.
- Lack of Control: Investors typically have no say in management decisions, and distributions are not guaranteed.
- Market and Operational Risks: Like all real estate, property performance is subject to vacancy rates, interest rate changes, and economic downturns.
Capital Square Realty Advisors has sponsored numerous DST offerings in recent years. If these investments were improperly recommended—such as to investors who did not meet accreditation standards or those seeking liquid or conservative investments—broker-dealers may be liable for investment losses.
Recovery of Investment Losses through FINRA Arbitration
Broker-dealers that sell DST investments have a duty to perform adequate due diligence and to ensure that the investments they recommend are suitable for their clients. If your financial advisor or brokerage firm misrepresented the risks or failed to disclose material information, you may have a claim for damages.
The White Law Group has recovered millions of dollars for investors through FINRA arbitration and continues to investigate claims against brokerage firms involving unsuitable sales of DSTs.
Free Consultation
If you invested in this DST and have concerns about your investment, please call The White Law Group at 888-637-5510 for a free consultation.
To learn more about your legal options, visit www.whitesecuritieslaw.com.
FAQs – CS1031 Retreat at Arden Farms Apartments
What is a Delaware Statutory Trust (DST)?
A DST is a legal entity used to hold title to investment real estate. It’s commonly used in 1031 exchange transactions, allowing investors to defer capital gains taxes. Investors purchase a “beneficial interest” in the trust rather than owning physical real estate.
Are DST investments safe?
While DSTs are marketed as passive, income-generating real estate investments, they carry significant risks including lack of liquidity, market downturns, and potential loss of principal. They are typically suitable only for accredited investors with a high-risk tolerance.
Can I sue my financial advisor for DST investment losses?
Yes, if your advisor failed to conduct proper due diligence, misrepresented the investment, or recommended it without regard to your financial profile or risk tolerance, you may be able to recover losses through a FINRA arbitration claim.
Last modified: July 25, 2025
