CS1031 Palm Lake Club MHC, DST – Securities Investigation

The White Law Group is reviewing potential securities fraud claims on behalf of investors who purchased CS1031 Palm Lake Club MHC, DST, a Delaware Statutory Trust (DST) investment offering created by Capital Square Realty Advisors, LLC. This private placement was structured for 1031 exchange investors but, like many DST offerings, it may present more risk than many investors realize.

According to this SEC filing, the 2021 offering sought to raise $24.3 million from accredited investors across the country. The minimum investment was $50,000, with estimated sales commissions of $2,065,500 and approximately $539,170 in proceeds earmarked for the sponsor or insiders. The broker-dealer of record for the transaction was WealthForge Securities, LLC (CRD#: 152550), and the securities offered were beneficial interests in a DST. The issuer relied on Rule 506(c) of Regulation D to qualify for exemption from SEC registration.

Why DST Investments May Be Risky

DST investments are often promoted as passive real estate opportunities, but they come with challenges that investors should understand:

• Illiquidity: There is no secondary market, meaning investors may be locked in for 7–10 years or more.
• Upfront Costs: High sales commissions and fees reduce investor capital from the outset.
• Market Exposure: Tenant turnover, market downturns, and property management issues can all impact returns.
• No Voting Rights: Investors lack control over key decisions, such as when to sell the property.

What Are My Options if I Have Concerns?

If your financial advisor failed to properly disclose these risks or sold you CS1031 Palm Lake Club MHC, DST without fully evaluating your financial situation, you may be entitled to recover damages through FINRA arbitration. Brokerage firms can be liable for failing to conduct due diligence or making unsuitable investment recommendations.

Get a Free Case Evaluation for CS1031 Palm Lake Club MHC DST

The White Law Group has represented thousands of investors in claims involving DSTs and other private placements nationwide.

If you purchased this DST and would like to discuss your legal options, call 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.

CS1031 Palm Lake Club MHC, DST – Securities Investigation

The White Law Group is reviewing potential securities fraud claims on behalf of investors who purchased CS1031 Palm Lake Club MHC, DST, a Delaware Statutory Trust (DST) investment offering created by Capital Square Realty Advisors, LLC. This private placement was structured for 1031 exchange investors but, like many DST offerings, it may present more risk than many investors realize.

According to this SEC filing, the 2021 offering sought to raise $24.3 million from accredited investors across the country. The minimum investment was $50,000, with estimated sales commissions of $2,065,500 and approximately $539,170 in proceeds earmarked for the sponsor or insiders. The broker-dealer of record for the transaction was WealthForge Securities, LLC (CRD#: 152550), and the securities offered were beneficial interests in a DST. The issuer relied on Rule 506(c) of Regulation D to qualify for exemption from SEC registration.

Why DST Investments May Be Risky

DST investments like CS1031 Palm Lake Club MHC, DST are often promoted as passive real estate opportunities, but they come with challenges that investors should understand:

• Illiquidity: There is no secondary market, meaning investors may be locked in for 7–10 years or more.
• Upfront Costs: High sales commissions and fees reduce investor capital from the outset.
• Market Exposure: Tenant turnover, market downturns, and property management issues can all impact returns.
• No Voting Rights: Investors lack control over key decisions, such as when to sell the property.

What Are My Options if I Have Concerns?

If your financial advisor failed to properly disclose these risks or sold you CS1031 Palm Lake Club MHC, DST without fully evaluating your financial situation, you may be entitled to recover damages through FINRA arbitration. Brokerage firms can be liable for failing to conduct due diligence or making unsuitable investment recommendations.

Get a Free Case Evaluation

The White Law Group has represented thousands of investors in claims involving DSTs and other private placements nationwide.

If you purchased CS1031 Palm Lake Club MHC, DST and would like to discuss your legal options, call 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.

FAQs – CS1031 Palm Lake Club MHC, DST

How long is the holding period for this DST?

Typically, DST investments require a holding period of 7–10 years before liquidation.

What happens if the property underperforms?

Lower occupancy rates or declining market values can significantly reduce or eliminate returns.

Can investors recover possible losses?

Yes, if the investment was misrepresented or deemed unsuitable for your risk tolerance, you may have grounds for a FINRA arbitration claim.