Cove Capital Acquires San Antonio Multifamily Property for $15.8M DST Offering
Cove Capital Investments has acquired a 170-unit multifamily community in San Antonio, Texas, to anchor its Cove San Antonio Multifamily 119 DST, a Delaware statutory trust offering targeting more than $15.8 million in equity from 1031 exchange investors.
The property was acquired through a lender’s real estate owned (REO) disposition process at a purchase price below both its appraised value and the outstanding loan balance, providing what the sponsor described as an attractive cost basis relative to replacement cost and recent comparable transactions.
“We believe the property’s location, value-add potential, and positioning within one of Texas’ strongest long-term growth markets provide a solid opportunity for long-term value creation potential,” said Dwight Kay, managing member and co-founder of Cove Capital Investments.
Located in northeast San Antonio, the community is adjacent to one of the region’s largest industrial and logistics corridors and benefits from continued public and private investment. Major demand drivers include Joint Base San Antonio, Brooke Army Medical Center—the Department of Defense’s flagship medical facility—and the ongoing expansion of San Antonio International Airport.
“Acquiring the property below its appraised value and the outstanding loan balance provided an attractive basis that we believe potentially offers meaningful long-term value to our DST investors,” added Chay Lapin, managing member and co-founder of Cove Capital Investments.
The acquisition expands Cove Capital’s recent investment activity in tax-deferred exchange properties. The firm recently acquired a fully leased grocery-anchored shopping center in Princeton, Kentucky, backing its $5.3 million Cove Princeton KY Opportunity 117 DST, as well as a mission-critical industrial distribution facility in Paducah, Kentucky, supporting its Cove Essential Net Lease Industrial 116 DST, which is seeking to raise more than $14.5 million in equity.
Cove Capital Investments operates a portfolio of over 4.3 million square feet of real estate nationwide.
Pictured: Multifamily community in San Antonio, Texas