Cove Capital Increases Annual Distribution Rate for Tennessee Multifamily DST

Cove Capital Investments announced it has issued its sixth consecutive annual distribution rate increase, paid monthly, for the firm’s Thistlewood Townhomes Delaware Statutory Trust (DST) in Clarkesville, TN.

Acquired in 2018, the townhome community of 34 high-quality units is believed to be the first-ever all-cash/debt-free multifamily Delaware Statutory Trust offering, according to the firm.

The most recent rate increased by 2.72% over the same period a year ago, according to Dwight Kay, managing member and co-founder of Cove Capital Investments. “We anticipate potentially seeing continued distribution increases throughout the hold period,” said Kay.

“For our DST investors, we consider this an incredible win to be able to deliver an increasing distribution rate as outlined in our PPM, payable monthly, in a time where many multifamily real estate sponsor companies have had to lower monthly distributions due to unforeseen expense increases and rent growth stagnation,” added said Chay Lapin, managing member and co-founder of Cove Capital Investments.

Los Angeles-based Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.4 million square feet of real estate in 33 states nationwide.