Cove Capital’s Texas Build-to-Rent DST Hits $27.2M Equity Target

Cove Capital Investments, LLC has fully subscribed its Cove Texas Build-to-Rent 97 DST, raising $27,223,181 in equity. The latest closing extends an active run for the debt-free Delaware Statutory Trust sponsor as demand for build-to-rent and income-focused structures remains robust. 

“This Build-to-Rent offering in San Antonio is a great example of the Cove Capital team in action, and how our debt-free Delaware Statutory Trust investment thesis continues to appeal to our growing group of investors, broker-dealers, and RIAs,” said Dwight Kay, Managing Member and Founder of Cove Capital Investments.  

The property comprises 83 newly constructed single-family rental units in one of San Antonio’s most sought-after submarkets, with direct proximity to major employers and top-ranked schools, according to Kay. 

Chay Lapin, Managing Member and Founder of Cove Capital, said investors were also drawn to the offering’s income profile. “There is room for potential rental rate increases as leases roll over in the coming months, adding to the potential for growing revenue and Net Operating Income (NOI),” he noted, adding that the 100% debt-free structure “greatly reduces the risk of lender foreclosure, further enhancing investor protection.” 

Lapin highlighted that Cove’s principals are co-investing alongside clients and that investors retain flexibility around any future 721 UPREIT transaction. “Instead of signing up today for a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not — at their discretion,” he said. 

The Texas Build-to-Rent close follows the full subscription of Cove’s $27.7 million Cove Diversified Portfolio 88 DST and $12.1 million Cove Essential Net Lease Industrial 114 DST, as well as new acquisitions and launches across its essential net lease industrial series. 

Cove Capital Investments operates a portfolio of over 3.7 million square feet of real estate nationwide. 

Pictured: Build-to-Rent community in San Antonio