CS1031 Twin Palms MHC, DST – What Investors Should Know
The White Law Group is reviewing claims on behalf of investors in CS1031 Twin Palms MHC, DST, a Delaware statutory trust offering sponsored by Capital Square Realty Advisors, LLC. According to a Form D filing with the SEC, the 2021 offering sought to raise $36,000,000 from accredited investors.
Summary of Offering Terms:
- Minimum Investment: $50,000
- Total Offering Amount: $36,000,000
- Commissions Paid to Brokers: Estimated $3,060,000
- Use of Proceeds to Promoters: Approximately $810,580
- Securities Offered: Beneficial interests in a Delaware statutory trust
The Risks of Private Placement DSTs
Investments in DSTs like CS1031 Twin Palms MHC, DST are high-risk and generally unsuitable for conservative investors. Common risks include:
- Lack of liquidity – investors may not be able to sell their interests easily.
- High costs and fees that reduce overall returns.
- Potential for property devaluation or income shortfalls.
Were You Misled by Your Broker?
FINRA regulations require financial advisors to perform due diligence and ensure that private placement investments are appropriate for each investor’s situation. In some cases, brokers recommend DSTs without fully explaining the risk or the illiquid nature of the investment.
Explore Your Legal Options
If you invested in this DST and sustained losses, you may have grounds for a FINRA arbitration claim against the broker-dealer who sold you the investment.
To discuss your potential claim, call The White Law Group at (888) 637-5510 or visit whitesecuritieslaw.com.
FAQs – CS1031 Twin Palms MHC, DST
Why are DST investments considered illiquid?
There is typically no public market to sell DST interests, meaning investors must hold the investment until the trust is liquidated.
How much did brokers make in commissions on this offering?
According to the filing, brokers received approximately $3,060,000 in commissions, which can create conflicts of interest.
What should I do if I believe my broker misrepresented the risks?
Contact a securities attorney to explore potential recovery options, including FINRA arbitration claims.
Last modified: July 29, 2025
