Cove Capital Seeks $15.4M Capital Raise With Industrial Asset DST in San Antonio

Delaware statutory trust sponsor Cove Capital Investments LLC completed the purchase of a small bay industrial asset in San Antonio, Texas. The property comprises the firm’s Texas Small Bay 85 Flex DST, a Regulation D, Rule 506(c) offering targeted to raise just under $15.4 million.

The property was purchased as part of its portfolio of debt-free DST real estate assets for 1031 exchange and direct cash investors.

“The 68,400-square-foot asset was constructed in 2000 and boasts a dedicated tenant base with an average tenant tenure of 9.8 years and a [weighted average lease time] of over 5.4 years.,” said Dwight Kay, managing member and founding partner of Cove Capital Investments. “This is an opportunity for accredited investors to invest in, via a 1031 exchange or a direct cash investment at a $100,000 minimum, a 100% leased multi-tenant flex/industrial asset located in the coveted northwest submarket of San Antonio.”

Located one-third of a mile west of Interstate Highway 10, the property benefits from prominent visibility and exposure to over 33,000 vehicles per day. According to Cove Capital, the average household income of $84,000+ and median home value of $226,000-plus within a one-mile radius is a benefit.

“We are excited to introduce another debt-free DST real estate investment option. The Texas Small Bay 85 Flex DST offers high demand flex/industrial space that rarely becomes available in this sought-after submarket,” said Chay Lapin, managing member and founding partner of Cove Capital Investments. “Average rents at the property are considerably below market rents, providing us the potential opportunity to raise rents to market as leases roll.”

Lapin also noted that he and Kay would be personally investing in the asset.

Like many of Cove Capital’s real estate acquisitions – such as the October 24 purchase of General Time Industrial Park Opportunity 84 DST in Athens, Ga., and the purchase of The Peanut Factory Lofts through Cove Capital San Antonio Multifamily 74 DST – the Cove Texas Small Bay 85 Flex DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with no risk of lender foreclosure or lender cash flow sweeps.

“This investment highlights our dedication to acquiring quality assets in strategic locations that provide investment potential for our investors. We look forward to our ownership period and are honored to add this location to our portfolio of over 2.6 million square feet,” said Kay.

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 2.6 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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