Concerned About Your Investment in CS1031 Harbor View MHC, LLC?
If you invested in CS1031 Harbor View MHC, LLC, you may be able to recover losses through FINRA arbitration. The White Law Group is investigating potential claims against the brokerage firms that recommended this high-risk investment to retail clients.
Overview of CS1031 Harbor View MHC, LLC
CS1031 Harbor View MHC, LLC is a Delaware limited liability company formed in 2020 to acquire and manage real estate. The investment was offered by Capital Square Realty Advisors, LLC, a sponsor of Delaware Statutory Trusts (DSTs) and other real estate offerings. The company filed a Form D with the Securities and Exchange Commission in August 2020 to raise capital through a Rule 506(c) exempt offering.
According to the filing:
- Offering Amount: $13.6 million
- Minimum Investment: $50,000
- Sales Commissions: $1,190,000 (estimated)
- Use of Proceeds: $235,680 allocated to related parties
- Selling Broker: WealthForge Securities, LLC (CRD#: 152550)
As with most Reg D offerings, the SEC provides this important disclaimer:
“The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete. The reader should not assume that the information is accurate and complete.”
Risks of Investing in DSTs Like CS1031 Harbor View MHC
While DSTs can provide potential tax deferral through 1031 exchanges and passive real estate income, they are also illiquid and speculative. Key risks include:
- Lack of Liquidity – Investors cannot sell or redeem early
- High Fees – Commissions and sponsor fees reduce investor returns
- Market Risk – Exposure to downturns in specific regional real estate markets
- Limited Control – Investors have no say in operations or asset management
- Unsuitability – Often inappropriate for conservative or income-focused investors
Broker Due Diligence Obligations
Brokerage firms are required under FINRA rules to conduct thorough due diligence on alternative investments and ensure they are suitable for each individual investor. That includes understanding the product’s structure, risks, and fees, as well as the investor’s financial profile, investment experience, and objectives.
Failure to meet these obligations may be grounds for a FINRA arbitration claim if losses occur.
Recovery Through FINRA Arbitration
If your financial advisor failed to disclose the risks of investing in or misrepresented the investment as safe or conservative, you may be eligible to file a claim to recover your losses. FINRA arbitration is a streamlined legal process for resolving disputes between investors and brokerage firms.
Free Case Evaluation
If you are concerned about your investment in CS1031 Harbor View MHC, LLC, contact The White Law Group for a free consultation.
888-637-5510
The White Law Group is a national securities fraud law firm with offices in Chicago, IL and Seattle, WA, representing investors across the country in claims against broker-dealers.
Last modified: July 11, 2025
