CS1031 Lullwater at Big Ridge Apartments, DST – Investment Investigation

The White Law Group is investigating potential claims on behalf of investors who purchased CS1031 Lullwater at Big Ridge Apartments, DST, a private placement investment structured as a Delaware Statutory Trust (DST) and sponsored by Capital Square Realty Advisors, LLC. DST offerings like this one are frequently marketed as tax-advantaged investments for 1031 exchange purposes, but they often involve significant risks that may not be suitable for many investors.

According to this filing, the 2021 offering was structured to raise approximately $27.9 million from accredited investors across the country. The minimum required investment was $50,000, with estimated sales commissions of $2.3 million and roughly $1.58 million of the proceeds earmarked for sponsor or insider compensation. The securities, offered as beneficial interests in a DST, were sold under Rule 506(c) of Regulation D, with WealthForge Securities, LLC (CRD#: 152550) serving as the broker-dealer of record.

What Are the Concerns CS1031 Lullwater at Big Ridge Apartments DST?

DSTs like CS1031 Lullwater at Big Ridge Apartments are often described as passive real estate investments, but investors should be aware of the risks:

• Illiquidity: DSTs generally have long holding periods of 7–10 years and offer no secondary market for early liquidation.
• Substantial Fees: Upfront sales commissions and sponsor expenses reduce the amount of investor capital actually deployed into the property.
• Market Sensitivity: Returns may fluctuate with tenant occupancy, economic downturns, and property performance.
• No Investor Control: Investors cannot participate in day-to-day management or strategic decisions regarding the asset.

Can Investors Pursue Recovery?

If your financial advisor recommended CS1031 Lullwater at Big Ridge Apartments, DST without properly disclosing these risks or evaluating whether it was suitable for your financial profile, you may be able to pursue damages through FINRA arbitration. Brokerage firms can be held responsible for failing to conduct due diligence or for making unsuitable investment recommendations.

Discuss Your Situation with a Securities Attorney

The White Law Group has over two decades of experience representing investors in claims related to DSTs and other alternative investments.

For a free consultation about your investment in CS1031 Lullwater at Big Ridge Apartments, DST, call 888-637-5510 or visit whitesecuritieslaw.com.

FAQs – CS1031 Lullwater at Big Ridge Apartments, DST

What type of investment is CS1031 Lullwater at Big Ridge Apartments, DST?

It is a Delaware Statutory Trust offered under Regulation D, often used for 1031 exchange transactions.

What makes DSTs potentially unsuitable?

DSTs involve high upfront fees, limited liquidity, and investors have no control over management decisions.

What options do I have if this investment wasn’t suitable for me?

You may be able to pursue recovery through FINRA arbitration if your broker failed to disclose risks or sold the DST inappropriately.