CS1031 Williamsburg VA Apartments, DST – Investigation Underway

The White Law Group is investigating potential claims on behalf of investors in CS1031 Williamsburg VA Apartments, DST, a Delaware Statutory Trust (DST) sponsored by Capital Square Realty Advisors, LLC. This private placement, launched in 2020, was designed to raise over $21.5 million from accredited investors and is commonly marketed as a 1031 exchange vehicle.

According to the SEC filing, the minimum investment was $50,000, and the broker-dealer of record was WealthForge Securities, LLC (CRD#: 152550). Estimated sales commissions totaled approximately $1.88 million, while insider proceeds were reported at more than $1.23 million.

Key Concerns About CS1031 Williamsburg VA Apartments

DST investments like CS1031 Williamsburg VA Apartments are often promoted as tax-advantaged, income-generating opportunities. However, investors should be aware that these offerings are generally illiquid, meaning they cannot be sold on a secondary market before the DST’s liquidation, which can take 7–10 years.

Additionally, upfront commissions and sponsor fees reduce the amount of capital invested in the property, making it harder to generate positive returns. Real estate market shifts, tenant vacancies, or economic downturns can further impact property performance and distributions.

What If Your Advisor Didn’t Explain the Risks?

Brokerage firms are required to ensure that investments they recommend are appropriate for each client’s goals and risk tolerance. If your financial advisor failed to disclose the risks of this DST or recommended the investment inappropriately, you may be eligible to pursue a claim for damages through FINRA arbitration.

Discuss Your Options With a Securities Attorney

The White Law Group has decades of experience representing investors nationwide in claims involving DSTs and other high-risk alternative investments. If you are concerned about your investment we can help.

Call 888-637-5510 for a free case evaluation, or visit whitesecuritieslaw.com to learn more.

FAQs – CS1031 Williamsburg VA Apartments

How long is the holding period for this investment?

DST investments often require a holding period of 7–10 years, during which your funds are typically inaccessible.

Why are DSTs considered risky?

They involve high fees, no liquidity, and no control over key management or property sale decisions.

Can I recover my investment?

If your advisor misrepresented the investment or recommended it despite it being unsuitable, you may have the ability to recover damages through FINRA arbitration.