#United States #San Antonio #Cove Capital Investments #Industrial Asset

Cove Capital Investments Makes Strategic Acquisition in San Antonio

Cove Capital Investments, a prominent Delaware Statutory Trust sponsor, recently made headlines with its successful acquisition of a Small Bay Industrial Asset in San Antonio, Texas. This strategic purchase adds to its increasingly diverse portfolio, currently comprising 107 properties across the nation.

The newly acquired asset spans 68,400 square feet and was built in 2000, showcasing a solid construction quality. One of its most notable features is its dedicated tenant base, which boasts an impressive average tenure of 9.8 years, along with a Weighted Average Lease Term (WALT) exceeding 5.4 years. Dwight Kay, one of the firm's founding partners, emphasized that this investment is a chance for accredited investors to delve into a fully leased, multi-tenant flex industrial property through options like 1031 exchanges or direct cash investments, with a minimum threshold set at $100,000.

Strategically positioned just a short distance from Interstate 10 and Loop 1604, the asset enjoys high visibility and daily exposure to over 33,000 vehicles. The location's appeal is further enhanced by the rapid growth and development of the northwest submarket in San Antonio, which has consistently attracted businesses seeking flexible industrial spaces.

Chay Lapin, also a founding partner, expressed excitement about this acquisition, noting that the Texas Small Bay 85 Flex DST offers investors a rare opportunity in a high-demand market where such spaces are seldom available. He remarked on the current rental rates, highlighting that they are substantially below the market average, hence hinting at potential increases as lease agreements roll over. This presents a lucrative growth opportunity for the firm and its investors.

In line with its strategy of minimizing risk, Cove Capital Investments has acquired this new asset with zero leverage. This debt-free approach appeals to investors who prefer to avoid the risks associated with mortgage obligations, such as lender foreclosure. The firm is dedicated to identifying and securing quality assets in well-located areas, promoting investment potential for its stakeholders.

With an impressive portfolio that spans over 2.6 million square feet in 33 states, Cove Capital has built a trusted reputation among more than 1,900 investors, many of whom have engaged in multiple offerings over the years. Their preference for debt-free investments aligns with investor demands for lower risk avenues, further solidifying their position in the market.

As Cove Capital Investments continues its expansion, Kay and Lapin reaffirm their commitment to delivering quality investment opportunities, assuring stakeholders that each acquisition is carefully evaluated for long-term potential. The addition of the San Antonio asset not only enhances their portfolio but also reflects their adaptability to changing market dynamics.

For those interested in exploring current investment offerings, Cove Capital invites prospective investors to visit their official website for comprehensive details. As the firm navigates the continually evolving real estate landscape, it remains focused on maximizing investor returns while prioritizing asset quality and strategic location.