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Cove Capital Fully Subscribes $32 Million Dallas Multifamily DST Offering

Cove Capital Fully Subscribes $32 Million Dallas Multifamily DST Offering. 1031 exchange, alternative investments, cove capital, cove, multifamily, delaware statutory trust, DST, real estate

Cove Capital Investments LLC, a private equity real estate firm and Delaware Statutory Trust sponsor, announced they have fully subscribed Cove Dallas Multifamily 59 DST, a Regulation D, Rule 506(c) DST offering.

The offering, launched in August 2022, raised nearly $33 million of equity from accredited investors. According to Cove Capital, the 1031 exchange DST offering was made available to accredited 1031 exchange and direct cash investors as an all-cash/debt-free DST offering designed to potentially mitigate risk of lender foreclosure or lender cash flow sweeps. The 130,128-square-foot complex contains 159 units and is located 20 minutes from downtown Dallas, in Lancaster, Texas.

“We would like to thank each of our clients who invested in this DST and all of the members of the Cove selling group including broker/dealers, registered representatives, and RIAs,” said Dwight Kay, managing member and founding partner of Cove.

Kay explained that the Cove Dallas Multifamily 59 DST is a value-add multifamily offering with a business plan to potentially drive value at the property through various initiatives. “We are seeing solid job growth in Lancaster as 6 million square feet of new warehouse and manufacturing space was added over the last 5 years with another 7 million square feet planned for the next 5 years. We felt confident our investors would be attracted to the asset’s location and the overall business strategy that Cove Capital has for the property as well as that they would appreciate the fact that there is no loan encumbering the asset,” said Kay.

“…Cove’s hands-on approach to managing the building has shown significant improvements throughout the property and may potentially help to continue to increase revenue potential,” said Chay Lapin, managing member and founding partner.

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 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.

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