Cove Capital Fully Subscribes $32M Dallas Multifamily DST Offering
Cove Capital Investments, LLC, a Los Angeles-based Delaware Statutory Trust (DST) sponsor and private equity real estate firm, announced that its Cove Dallas Multifamily 59 DST, a regulation D Rule 506c DST offering, has been fully subscribed.
The total amount raised was just over $32.4 million.
The 1031 exchange DST offering was made available to accredited 1031 exchange and direct cash investors as an all-cash/debt-free DST offering designed to potentially mitigate risk of lender foreclosure or lender cash flow sweeps, noted Dwight Kay, managing member and founding partner of Cove Capital Investments.
The 130,128 square-foot complex contains 159 units and is located 20 minutes from downtown Dallas in Lancaster, TX.
The Cove Dallas Multifamily 59 DST is a value-add multifamily offering with a business plan to potentially drive value at the property through various initiatives, explained Kay. “We are seeing solid job growth in Lancaster as 6 million square feet of new warehouse and manufacturing space was added over the last 5 years with another 7 million square feet planned for the next 5 years.”
“We felt confident our investors would be attracted to the asset’s location and the overall business strategy that Cove Capital has for the property as well as that they would appreciate the fact that there is no loan encumbering the asset,” said Kay.
The portfolio now consists of more than 1.9 million square feet of multifamily, industrial, medical and net lease assets.
Pictured: 130,128 square-foot Dallas complex