Cove Capital Fully Subscribes $18.68M Multifamily DST Offering
Delaware statutory trust company Cove Capital Investments LLC has fully subscribed its San Antonio Multifamily 74 DST offering, a Regulation D, Rule 506(c) Delaware statutory trust. The amount of equity raised for the offering since its launch in September 2024 was nearly $18.68 million.
“The successful sellout of the DST reflects strong investor confidence in Cove Capital’s abilities and our commitment to acquiring high quality assets in key markets across the country. The Peanut Factory Lofts was a great example of this strategy in action, and how our debt-free investment thesis continues to appeal to our growing group of investors, broker-dealers, and [registered investment advisers],” said Dwight Kay, managing member and co-founder of Cove Capital Investments.
According to Kay, the San Antonio DST had unique characteristics that made it an attractive acquisition.
“For example, the property has an appealing mix of dwelling units including one-, two-, and three-bedroom floorplans, townhomes, and a penthouse. This selection perfectly aligns with the historic downtown San Antonio market where the building is located,” said Kay.
Additionally, the 96,184-square-foot Peanut Factory Lofts built in 2014 features 102 units and 127 parking spaces. Residents have private garages, a coffee bar, a landscaped courtyard, door-to-door trash pickup, a dog park, a fitness center, and a resort-style pool with a cabana.
The asset was originally constructed as a peanut processing plant and then converted into The Peanut Factory Lofts, a Class A apartment community, according to Chay Lapin, managing member and co-founder of Cove Capital. The building also incorporated some of the original silos.
Combined with its proximity to San Antonio’s trendy Southtown, Historic King William District, Blue Star Arts Complex and Historic Market Square, Cove Capital said the asset has a distinct aesthetic.
“On top of these elements, investors also appreciated our all-cash position, which ensured closing certainty – critical for securing this unique asset,” said Lapin. “We are excited to begin our list of property level improvements on behalf of our investors in an effort to potentially increase net operating income and property value.”
In other Cove Capital news, the company recently acquired a 26,795-square-foot FedEx distribution center located in Sierra Vista, Ariz. The industrial asset – located less than 1,000 feet from U.S. Highway 90, which is the primary thoroughfare that connects this part of Arizona to Interstate 10 – comprises Essential Net Lease Industrial 87 DST and seeks to raise approximately $5.88 million in equity.
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible DST properties, as well as other real estate investment offerings. The team consists of acquisitions, asset management, accounting, due diligence, in-house counsel, investor relations, marketing, and capital markets. Cove Capital has sponsored over 2.3 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 33 states nationwide.
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