SAN ANTONIO, TX - Cove Capital Investments, a Delaware Statutory Trust sponsor company that operates a portfolio of over 4.3 million square feet of real estate nationwide, has acquired the Cove San Antonio Multifamily 119 DST, a 170-unit multifamily community in San Antonio, Texas.
According to Dwight Kay, Managing Member and Co-Founder of Cove Capital, the property was acquired through a lender's REO disposition process at a purchase price below its appraised value, as well as below the outstanding loan balance, creating an attractive basis relative to replacement cost and recent comparable transactions.
"This multifamily asset aligns well with our investment strategy of acquiring quality assets at an attractive basis in markets with potentially favorable long-term fundamentals. 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."
San Antonio remains one of the nation's fastest-growing metropolitan areas, supported by a diversified economy spanning advanced manufacturing, data centers, cybersecurity, healthcare, military, logistics, and tourism. Located in northeast San Antonio, the Cove San Antonio Multifamily 119 DST offering is in direct proximity to one of the region's largest industrial and logistics corridors and continues to benefit from major public and private investment, anchored by Joint Base San Antonio, Brooke Army Medical Center—the Department of Defense's premier medical facility—and the ongoing expansion of San Antonio International Airport.
"REO acquisitions directly from a lender require extensive due diligence, patience, and the ability to navigate a unique transaction process. 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," said Chay Lapin, Managing Member and Founder of Cove Capital Investments.
Cove Capital's acquisition comes as San Antonio's multifamily market, like many other growth markets in the US, moves past a period of elevated new construction. With new apartment deliveries expected to decline, continued population and employment growth are expected to support the absorption of existing inventory, creating a potentially favorable environment for well-located multifamily communities.