CS1031 Vista Brooklyn Apartments, DST – Lawsuit Investigation

The White Law Group is investigating potential claims on behalf of investors who purchased CS1031 Vista Brooklyn Apartments, DST, a private placement structured as a Delaware Statutory Trust (DST). The offering was sponsored by Capital Square Realty Advisors, LLC, a firm specializing in 1031 exchange real estate investments.

According to this filing, the 2021 offering sought to raise $63.7 million in equity from accredited investors. DST investments like CS1031 Vista Brooklyn Apartments are frequently marketed as tax-advantaged and passive, but in reality, they can involve significant risks and fees.

Details About the Offering: CS1031 Vista Brooklyn Apartments

• Target Capital Raise: $63,700,000
• Minimum Investment: $50,000
• Estimated Sales Commissions: $5,414,500
• Proceeds Paid to Sponsor/Insiders: $3,346,000 (estimated)
• Broker-Dealer of Record: WealthForge Securities, LLC (CRD#: 152550)
• Investment Type: Beneficial interests in a DST
• Exemption Used: Rule 506(c) of Regulation D

Why DST Investments Can Be Problematic

DSTs such as CS1031 Vista Brooklyn Apartments are often presented as stable and straightforward real estate investments, but they can expose investors to:

• Limited Liquidity: Selling before the DST’s liquidation event is typically not possible.
• High Upfront Fees: Significant commissions and sponsor compensation reduce the amount invested in real property.
• Market-Dependent Returns: Occupancy fluctuations, tenant defaults, and broader economic trends can negatively impact performance.
• No Investor Control: All major decisions, including when to sell, are made solely by the sponsor.

Do You Have Recovery Options?

If your broker or financial advisor failed to properly disclose these risks, or if this DST was recommended without sufficient due diligence, you may be entitled to pursue damages through FINRA arbitration. Brokerage firms can be held responsible for making unsuitable recommendations or for failing to supervise their advisors.

Get Legal Guidance

The White Law Group has extensive experience representing investors in claims involving DSTs and other alternative investments.

For a free consultation, call 888-637-5510 or visit whitesecuritieslaw.com.

FAQs – CS1031 Vista Brooklyn Apartments, DST

How long would I be expected to hold this DST?

DSTs often have holding periods of 7–10 years, with little to no opportunity for early exit.

What happens if the property underperforms?

Reduced income or property value can result in lower returns or even a loss of principal.

Are there options to recoup possible losses?

If you were misled or sold an unsuitable investment, you may be able to seek damages through FINRA arbitration.