Cove Capital Launches New DST Offering With Purchase of Multifamily Property in Texas
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Cove Capital Investments LLC, an investment sponsor that specializes in providing accredited investors access to debt-free Delaware statutory trust investment options for their 1031 exchange and direct cash investments, has completed the purchase of The Peanut Factory Lofts, a multifamily property in downtown San Antonio.
According to Cove Capital, the asset was an all-cash acquisition on behalf of Cove Capital San Antonio Multifamily 74 DST, a Regulation D, Rule 506(c) offering that aims to raise $18,679,418 million in equity. The purchase price for the property was not disclosed.
Located on 2.69 acres, Cove stated that the asset was originally constructed as a peanut processing plant and then, in 2014, it was converted into a gated, 102-unit, Class-A apartment community with a mix of one-, two-, and three-bedroom floorplans, including townhomes and a three-bedroom penthouse complete with a balcony and rooftop access. Some of the property’s original silos have also been transformed into modern apartments.
Cove said that this unique history, along with the community’s convenient proximity to several popular San Antonio neighborhoods, should help the property to demand “peak rents.” The company also pointed out that the acquisition offers 127 parking spaces, along with a host of premium amenities, including private garages, a coffee bar, a courtyard, door-to-door trash pick-up, a dog park, a fitness center, and a resort-style pool with cabana. The property will be managed by Cove Capital’s property management team.
“Like many commercial and multifamily sellers today, this investor was coming up on a loan maturity date and potentially facing a foreclosure situation. As all-cash buyers, Cove Capital Investments was able to give the seller confidence that we would indeed close on the asset. Our debt-free platform was critical to successfully acquiring the Cove San Antonio Multifamily 74 DST,” said Chay Lapin, managing member and founding partner. “Our emphasis on debt-free investing continues to be an important differentiator in the 1031 exchange and Delaware statutory trust marketplace and an attractive ingredient for our growing number of accredited 1031 exchange investors, broker-dealers, registered representatives, and [registered investment advisers].”
This is just the latest acquisition in what has been a busy summer for Cove Capital. In August, the firm acquired a newly constructed Tractor Supply store on behalf of its Cove Tractor Net Lease 79 DST, along with three net-lease properties as part of its Essential Net Lease 81 DST. Similarly, in July, the firm acquired a trio of net-lease distribution centers as part of its Cove Net Lease Industrial 77 DST.
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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