CS1031 Villas at Ridgeview Falls Apartments, DST – Investment Investigation
The White Law Group is investigating potential securities fraud claims involving CS1031 Villas at Ridgeview Falls Apartments, DST, a Delaware statutory trust sponsored by Capital Square Realty Advisors, LLC.
According to a Form D filed with the SEC, the 2021 offering sought to raise approximately $35,200,000 from accredited investors. The offering was marketed as a 1031 exchange investment and made available in all 50 states through broker-dealers such as WealthForge Securities, LLC (CRD# 152550).
Details from the SEC Filing
- Total Offering Amount: $35,200,000
- Minimum Investment: $50,000
- Sales Commissions: Estimated $2,992,000
- Use of Proceeds to Promoters: Estimated $1,701,000
- Securities Offered: Beneficial interests in a Delaware statutory trust
- Exemption Claimed: Rule 506(c) of Regulation D
Because the offering was exempt from full SEC registration, the company was not required to provide investors with the same disclosures as a publicly traded investment.
Risks Involved with DST Investments
Investments like CS1031 Villas at Ridgeview Falls Apartments, DST are typically illiquid and intended for long-term investors. Potential risks include:
- Extended holding periods (often 7–10 years) with limited exit strategies.
- Market volatility and property-specific issues that could negatively impact cash flow.
- High upfront fees and sales commissions that can diminish overall returns.
Did Your Financial Advisor Recommend This Investment?
Brokerage firms that sold this DST were required under FINRA rules to perform adequate due diligence and ensure the investment was appropriate for each client. If your broker failed to properly evaluate your financial needs and risk tolerance, you may be entitled to recoup losses through FINRA arbitration.
Options for Recovery
If you experienced losses investing in this DST, you may be able to pursue a claim through FINRA arbitration. Arbitration is generally faster and less expensive than a traditional lawsuit, and claims are filed directly against the brokerage firm responsible for the recommendation.
Contact The White Law Group for a free consultation at (888) 637-5510 or visit whitesecuritieslaw.com.
FAQs – CS1031 Villas at Ridgeview Falls Apartments, DST
- What type of investment is a DST?
A Delaware Statutory Trust (DST) allows investors to own a fractional interest in large real estate assets. These structures are often used for 1031 exchange purposes. - How do sales commissions impact my returns?
High commissions and fees (in this case nearly $3 million) can significantly reduce the amount of your initial investment that goes toward the property purchase, affecting potential returns. - What should I do if my broker misrepresented this investment?
If your broker failed to disclose the risks or misrepresented the investment, you may be eligible to pursue a claim for damages through FINRA arbitration.
