Investigating Potential Lawsuits: CS1031 Tapestry West Apartments DST
Are you concerned about your investment in CS1031 Tapestry West Apartments, DST? The White Law Group is investigating potential securities lawsuits involving FINRA-registered brokerage firms that may have improperly recommended CS1031 Tapestry West Apartments DST to investors. If you sustained losses or were overconcentrated in illiquid alternatives, you may be able to pursue recovery through FINRA arbitration.
About the Offering (Form D)
According to SEC filings, Capital Square Realty Advisors, LLC filed a Form D in 2022 for the CS1031 Tapestry West Apartments DST, a Delaware Statutory Trust raising an estimated $60,687,000. Capital Square reportedly acquired Tapestry West, a 262-unit Class A multifamily community in Richmond, Virginia, on behalf of the DST. The offering was marketed to accredited investors with a stated minimum investment of $50,000.
Risks of Investing in CS1031 Tapestry West Apartments DST
- Illiquidity: DST interests typically lack a secondary market; investors may be unable to exit until the property is sold, often 7–10+ years.
- No Control: Investors generally have no voting rights regarding operations, financing, or sale decisions.
- Capital Constraints: DSTs cannot raise new equity post-closing, which can be problematic if unexpected repairs or vacancies occur.
- Cash Flow Risk: Distributions may be reduced or suspended due to occupancy declines, higher expenses, or market conditions.
- Concentration & Market Risk: Single-asset exposure increases sensitivity to local economic and rental trends.
Broker Duties Under Regulation Best Interest
Broker-dealers must conduct reasonable due diligence and ensure recommendations are suitable for each client’s objectives, risk tolerance, and liquidity needs. If your advisor failed to fully disclose the risks of CS1031 Tapestry West Apartments DST or recommended it without proper diligence, the firm may be liable for your losses.
Recovery Options: FINRA Arbitration vs. Class Action
For investors with substantial losses (e.g., $100,000+), an individual FINRA arbitration claim often provides a more effective path to recovery than a class action, which is typically suited to large groups of smaller claims.
Free Consultation with a Securities Attorney
The White Law Group represents investors nationwide in claims against brokerage firms. We maintain offices in Chicago, Illinois and Seattle, Washington. If you are concerned about your investment in CS1031 Tapestry West Apartments DST, call 888-637-5510 for a free consultation or visit our homepage to learn more.
FAQs: CS1031 Tapestry West Apartments DST
What is CS1031 Tapestry West Apartments DST?
A Delaware Statutory Trust offered by Capital Square for 1031 exchange and other accredited investors, backed by a 262-unit Class A multifamily asset in Richmond, VA, per SEC filings.
Can I sell my DST interest before the property is sold?
Generally, no. DST interests are highly illiquid and usually cannot be sold on a public market. Most investors must wait for the asset’s disposition.
How do I know if I have a claim?
You may have a claim if your broker misrepresented the investment, failed to disclose material risks, overconcentrated your portfolio, or recommended the DST without assessing suitability. Investors can seek recovery through FINRA arbitration.
