CS1031 Residence at Riverwatch Apartments, DST – Investment Loss Investigation

The securities attorneys at The White Law Group are investigating potential claims involving the sale of CS1031 Residence at Riverwatch Apartments, DST, a Delaware Statutory Trust (DST) investment sponsored by Capital Square Realty Advisors, LLC.

This DST program, designed for 1031 exchange investors, was filed with the Securities and Exchange Commission (SEC) in 2020 and sought to raise $27 million in equity from accredited investors. While these offerings are frequently marketed as hands-off real estate investments with tax advantages, they can involve significant risks and high fees that may not be fully disclosed.

What Investors Should Know About the CS1031 Residence at Riverwatch Apartments

According to the SEC filing, the details of the offering include:

• Capital Raise Goal: $27,000,000
• Minimum Required Investment: $50,000
• Projected Sales Commissions: $2,362,500
• Sponsor/Insider Payments: Estimated $1,513,000
• Broker-Dealer: WealthForge Securities, LLC (CRD#: 152550)
• Security Type: Beneficial interests in a Delaware Statutory Trust
• Exemption: Rule 506(c) of Regulation D

Risks Associated with DST Investments

Investments like CS1031 Residence at Riverwatch Apartments can carry challenges that make them unsuitable for many investors, including:

• Limited Liquidity: There is typically no market to resell your shares before the DST liquidates, which could take 7–10 years or more.
• Heavy Upfront Costs: Substantial sales commissions and sponsor fees reduce the initial capital invested in real estate.
• Market Uncertainty: Real estate values and income can be negatively affected by vacancies, tenant defaults, or economic downturns.
• No Decision-Making Power: All major decisions—including when the property is sold—are at the discretion of the sponsor.

Options for Concerned Investors

If you purchased CS1031 Residence at Riverwatch Apartments, DST and were not fully informed of the risks, or if the investment was not suitable for your financial situation, you may have the right to seek compensation through FINRA arbitration. Brokerage firms can be held liable for negligent due diligence or unsuitable investment recommendations.

Speak with a Securities Attorney Today

The White Law Group has decades of experience pursuing claims for investors in complex real estate investments such as Delaware Statutory Trusts.

If you are concerned about your investment in CS1031 Residence at Riverwatch Apartments, DST, contact us for a free case evaluation at 888-637-5510 or visit whitesecuritieslaw.com for more information.

Frequently Asked Questions – CS1031 Residence at Riverwatch Apartments

How long is the typical holding period for a DST like this?

DSTs often require investors to hold their interest for 7–10 years or longer with no early exit options.

Can I lose my entire investment?

Yes. Declines in property value, market downturns, or sponsor mismanagement could lead to partial or complete loss of your principal.

What are my options if I was misled by my broker?

You may be able to recover losses by filing a FINRA arbitration claim against the brokerage firm that recommended the investment.