CS1031 Sun Key Village MHC, DST – Investor Investigation

The White Law Group is investigating potential securities claims on behalf of investors in CS1031 Sun Key Village MHC, DST, a Delaware statutory trust sponsored by Capital Square Realty Advisors, LLC.

According to a Form D filed with the SEC, the 2021 offering sought to raise approximately $26.3 million from accredited investors across the U.S. The minimum investment was set at $50,000, and the offering was marketed as a 1031 exchange opportunity through broker-dealers including WealthForge Securities, LLC (CRD# 152550).

Offering Overview : CS1031 Sun Key Village MHC

• Total Offering Amount: $26,300,000
• Sales Commissions: Estimated $2,301,250
• Use of Proceeds to Promoters: Estimated $736,860
• Minimum Investment: $50,000
• Securities Offered: Beneficial interests in a Delaware statutory trust
• Exemption Claimed: Rule 506(c) of Regulation D

Because this DST was sold as a private placement under Regulation D, it was not subject to the same level of regulatory oversight or disclosure requirements as publicly traded investments.

DST Investment Risks

DST investments can carry significant risks:

• Illiquidity: Investors may be unable to sell their interest for 7–10 years.
• Fees and Commissions: High upfront costs reduce the amount invested in the underlying property.
• Market and Property Performance: Returns depend on the property’s occupancy, location, and broader market conditions.

Were You Sold This Investment by Your Financial Advisor?

Brokerage firms have a fiduciary duty to conduct due diligence and recommend investments that align with each client’s risk tolerance and investment objectives. Failure to do so may expose the firm to liability.

Investors who suffered losses may be eligible to file a claim for damages through FINRA arbitration.

Your Legal Options

If you invested in CS1031 Sun Key Village MHC, DST and have concerns about your investment, The White Law Group may be able to help. Our attorneys represent investors in FINRA arbitration claims against the brokerage firms responsible for their recommendations.

For a free consultation, please call (888) 637-5510 or visit whitesecuritieslaw.com.

FAQs – CS1031 Sun Key Village MHC

What is the typical holding period for a DST?

DSTs are usually intended as long-term investments, with holding periods often lasting 7–10 years or longer.

Can I sell my DST interest if I need liquidity?

There is generally no secondary market for DST investments, meaning investors cannot easily sell their shares before the trust liquidates.

What happens if my broker didn’t explain the risks?

You may be able to recover your investment losses by filing a FINRA arbitration claim against the brokerage firm for unsuitable recommendations or misrepresentation.