CS1031 17 Broad Apartments, DST – Lawsuit Investigation

The White Law Group is examining potential securities fraud claims on behalf of investors who purchased CS1031 17 Broad Apartments, DST. This private placement was created as a Delaware Statutory Trust (DST) and was sponsored by Capital Square Realty Advisors, LLC, a firm known for structuring 1031 exchange real estate investments.

According to this filing, the 2021 offering sought to raise $18.4 million in equity from accredited investors. DST investments are frequently marketed as “passive” and tax-advantaged, but in reality, they may present significant risks.

Details About the Offering : CS1031 17 Broad Apartments

• Target Capital Raise: $18,465,000
• Minimum Investment: $50,000
• Estimated Sales Commissions: $1,569,525
• Proceeds Paid to Sponsor/Insiders: $990,230 (estimated)
• Broker-Dealer of Record: WealthForge Securities, LLC (CRD#: 152550)
• Investment Type: Beneficial interests in a DST
• Exemption Used: Rule 506(c) of Regulation D

Why These Investments Can Be Problematic

DSTs like CS1031 17 Broad Apartments are often marketed as stable income vehicles, but the structure can expose investors to:

• Limited Liquidity: Selling before the DST’s eventual liquidation is typically not possible.
• Substantial Fees: High upfront commissions and sponsor charges eat into investor equity.
• Market-Driven Volatility: Occupancy, tenant defaults, and broader real estate trends impact returns.
• Sponsor-Only Control: Investors have no say in major business or sale decisions.

Do You Have Recovery Options?

If you were not fully informed of these risks or if your financial advisor failed to conduct proper due diligence, you may be entitled to pursue damages through FINRA arbitration. Brokerage firms can be held accountable for making unsuitable recommendations.

Get Legal Guidance

The White Law Group has represented hundreds of investors nationwide in claims involving DSTs and other alternative investments.

For a free review of your situation, call 888-637-5510 or visit whitesecuritieslaw.com.

FAQs – CS1031 17 Broad Apartments DST

1. How long would I be expected to hold this DST?

Holding periods can be 7–10 years, with no guaranteed exit strategy.

2. What happens if the property loses tenants or value?

As an investor, you could face lower returns or even a loss of your principal investment.

3. Are there other options to recoup losses?

Yes, if you were misled or the recommendation was unsuitable, FINRA arbitration may be available.