CS1031 Holiday MHC, DST – Securities Investigation

The White Law Group is reviewing potential claims on behalf of investors in CS1031 Holiday MHC, DST, a Delaware Statutory Trust (DST) sponsored by Capital Square Realty Advisors, LLC. This Regulation D private placement was launched in 2022 and marketed primarily to accredited investors seeking 1031 exchange opportunities.

An SEC filing reveals that the DST planned to raise $38.3 million in investor funds, with a minimum investment of $50,000. Estimated sales commissions totaled approximately $3.25 million, and nearly $821,390 of investor proceeds were allocated to sponsor or insider compensation. WealthForge Securities, LLC (CRD#: 152550) served as the broker-dealer for the offering.

What Makes CS1031 Holiday MHC DST Risky?

DSTs such as CS1031 Holiday MHC are often promoted as hands-off real estate strategies, but they have serious drawbacks, including:

• No Secondary Market: Investors typically cannot sell before liquidation.
• Upfront Fees and Commissions: Large costs at the start can reduce the principal amount working for you.
• Performance Risk: Market changes, vacancies, and tenant issues can erode returns.
• Loss of Investor Control: Investors have no input on operational or sale decisions.

Can Investors Take Action if They Were Misled?

If your financial professional did not adequately explain these risks, or if CS1031 Holiday MHC, DST was not a suitable fit for your portfolio, you may be able to file a claim through FINRA arbitration. Brokerage firms are legally required to conduct due diligence on offerings and to make only suitable recommendations.

Talk to a Securities Attorney Today

The White Law Group has extensive experience recovering losses for investors in DST offerings and other complex private placements.

If you invested in CS1031 Holiday MHC, DST and want to explore your recovery options, contact us at 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.

FAQs : CS1031 Holiday MHC

What is the expected holding period?

These offerings are illiquid and typically require a holding period of 7–10 years.

What if the property doesn’t perform?

Lower occupancy or market downturns can lead to diminished distributions or even loss of principal.

What recovery options are available?

If the investment was misrepresented or unsuitable, you may be able to seek damages through FINRA arbitration.