Cove Capital Launches 170-Unit San Antonio Multifamily DST, Seeks $15.8M
Cove Capital Investments has acquired a 170-unit multifamily community in San Antonio, Texas, to form its San Antonio Multifamily 119 DST, a Delaware statutory trust offering structured under Regulation D, Rule 506(c) that seeks to raise approximately $15.8 million in equity from accredited investors.
The property was acquired through a lender’s real estate owned disposition process at a purchase price below both its appraised value and the outstanding loan balance, according to Dwight Kay, managing member and co-founder of Cove Capital.
“This multifamily asset aligns well with our investment strategy of acquiring quality assets at an attractive basis in markets with potentially favorable long-term fundamentals,” Kay said. “We believe the property’s location, value-add potential, and positioning within one of Texas’ strongest long-term growth markets provide a solid opportunity for long-term value creation potential.”
The property is located in northeast San Antonio, near what the company describes as one of the region’s largest industrial and logistics corridors and close to Joint Base San Antonio, Brooke Army Medical Center, and San Antonio International Airport, which is undergoing an expansion.
“REO acquisitions directly from a lender require extensive due diligence, patience, and the ability to navigate a unique transaction process,” said Chay Lapin, managing member and founder of Cove Capital Investments. “Acquiring the property below its appraised value and the outstanding loan balance provided an attractive basis that we believe potentially offers meaningful long-term value to our DST investors.”
The acquisition comes as San Antonio’s multifamily market moves past a period of elevated new construction, with new apartment deliveries expected to decline while continued population and employment growth support absorption of existing inventory, according to Cove Capital.
Roughly two years ago, the sponsor launched another San Antonio multifamily DST; its San Antonio Multifamily 74 DST, backed by The Peanut Factory Lofts, fully subscribed at nearly $18.68 million in mid-2025. The firm has also built recent Texas offerings around an optional 721 exchange rollup exit strategy, most recently with a build-to-rent DST that fully subscribed in May.
Cove Capital Investments is a DST sponsor company that has sponsored more than 4.3 million square feet of real estate nationwide, according to the company. More than 2,600 investors have invested with Cove Capital across its DST offerings, according to the company, many as repeat investors in multiple offerings over the years.
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