Cove Capital Acquires San Antonio Multifamily Asset for DST Offering 

Cove Capital Investments completed the purchase of The Peanut Factory Lofts, a multifamily asset in downtown San Antonio, TX for its Cove Capital San Antonio Multifamily 74 DST, a Regulation D, Rule 506(c) offering that seeks to raise more than $18.6 million. 

The all-cash acquisition is considered a “high-quality” addition to the firm’s growing portfolio of debt-free Delaware Statutory Trust real estate assets for 1031 exchange and direct cash investors, according to Dwight Kay, managing member and founding partner of Cove Capital Investments. 

Constructed in 2014, the 102-unit building has a net rentable area of 96,184 square feet, Kay said, and includes studio, one-, two-, and three-bedroom floorplans, townhomes, and a penthouse. The property is located on 2.69 acres. 

“Like many commercial and multifamily sellers today, this investor was coming up on a loan maturity date and potentially facing a foreclosure situation,” said Chay Lapin, managing member and founding partner. “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.” 

Like many of Cove Capital’s recent acquisitions, including the purchase of three net lease industrial distribution centers on behalf of its Cove Net Lease Industrial 77 DST, three net lease properties for its Cove Essential Net Lease 81 DST, its Rogers Business Park Opportunity 73 DST, and a net lease property for Cove Tractor Net Lease 79 DST, The Peanut Factory Lofts was acquired with 0% leverage.  

Cove Capital Investments operates a portfolio of over 2.4 million square feet of real estate in 33 states. 

Pictured: The Peanut Factory Lofts, San Antonio, TX.