CS1031 Zero Coupon Fulfillment Center, DST – Investment Investigation

The White Law Group is investigating potential claims involving CS1031 Zero Coupon Fulfillment Center, DST, a private placement structured as a Delaware Statutory Trust (DST) and sponsored by Capital Square Realty Advisors, LLC. DST investments like this are frequently marketed to 1031 exchange investors as passive real estate opportunities, but they often present high risks and substantial costs that may not be appropriate for many investors.

CS1031 Zero Coupon Fulfillment Center, DST

According to this filing, the 2022 offering sought to raise $52,270,000 from accredited investors. The minimum investment was $50,000, with approximately $4.4 million in estimated sales commissions and nearly $9.8 million projected to be paid to the sponsor and other insiders. WealthForge Securities, LLC (CRD#: 152550) served as the broker-dealer of record, and the securities were offered as beneficial interests in a DST under Rule 506(c) of Regulation D.

Why DST Investments Can Be Risky

While DSTs can seem appealing because of their tax-deferral advantages, investors should understand the significant downsides:

• Illiquidity: DSTs generally have no active secondary market, making it nearly impossible to sell before the investment matures.
• High Upfront Costs: Commissions, sponsor fees, and organizational expenses reduce the amount of capital invested in the property.
• Market Volatility: Performance is impacted by market trends, tenant defaults, and economic conditions.
• No Investor Control: All major decisions—including property management and sale—are made exclusively by the sponsor.

What Can Investors Do?

If your financial advisor recommended this DST without explaining these risks or assessing whether it was appropriate for your financial profile, you may be entitled to pursue a claim through FINRA arbitration. Brokerage firms can be held liable for unsuitable recommendations or for failing to conduct proper due diligence on these complex investments.

Speak with a Securities Fraud Attorney

The White Law Group has successfully handled hundreds of claims involving DSTs and other alternative investments.

To discuss your legal options, call 888-637-5510 or visit whitesecuritieslaw.com for a free consultation.

FAQs – CS1031 Zero Coupon Fulfillment Center, DST

What exactly is CS1031 Zero Coupon Fulfillment Center, DST?

It is a Regulation D real estate offering structured as a Delaware Statutory Trust for use by accredited investors in 1031 exchanges.

How long will my capital be tied up?

DSTs generally have holding periods of 7–10 years with no guaranteed exit option before liquidation.

Can I recover my funds if the investment performed poorly?

Possibly. If you were misled about the risks or the investment was unsuitable, you may be able to recover damages through FINRA arbitration.