#USA #Cove Capital #San Antonio #build-to-rent

Cove Capital Investments Acquires 83-Unit Residential Community

Cove Capital Investments, LLC, a prominent player in the real estate investment sector, has officially completed the acquisition of a brand-new Build-to-Rent (BTR) residential community comprising 83 single-family rental units in the vibrant city of San Antonio, Texas. This acquisition marks the finalization of the firm's Cove Texas Build-to-Rent 97 Delaware Statutory Trust (DST) offering, which emphasizes a debt-free acquisition strategy.

This significant purchase, valued at approximately $27.2 million, represents an outstanding opportunity for investors seeking attractive returns in a market characterized by rising rental demand. Dwight Kay and Chay Lapin, the founding partners of Cove Capital Investments, highlighted that this debt-free acquisition allowed them to acquire the property below the appraised value, thus presenting an immediate value-add opportunity. The investors in this DST offering stand to benefit from enhanced properties without the lender foreclosure risks typically associated with leveraged investments.

The Cove Texas Build-to-Rent 97 DST features modern, high-end amenities, including a resort-style pool and a lazy river, making it a desirable living environment for tenants. With the completed acquisition of these units, Cove aims to provide residents in San Antonio an upscale living experience, all while offering investors potential for significant net operating income as they anticipate increases in rental rates over time.

As of July 30, 2025, this newly constructed community boasts an impressive occupancy rate of 95%, underscoring its appeal in the thriving real estate market of San Antonio. Each rental home spans an average of 1,861 square feet, catering well to the needs of modern families.

The growing popularity of the Build-to-Rent model, particularly amid escalating home prices and rising mortgage rates, also contributes to the appeal of this investment. As urban areas experience constraints in housing inventory, the BTR model is becoming a lucrative segment for both tenants and investors alike. For tenants, it offers flexibility and shields them from several financial obligations linked to traditional homeownership, such as maintenance costs and insurance premiums. For investors, it presents a reliable opportunity amidst fluctuating real estate conditions.

"This is an exceptional investment opportunity in one of San Antonio's most desirable submarkets, located near major employers and reputable schools, which further boosts the community's attractiveness," stated Kay.

Additionally, Cove Capital Investments has designed the offering with potential long-term strategies in mind. Kay pointed out that they are also positioning investors with the opportunity to consider a 721 Exchange rollup as a means of potential liquidity down the line. Rather than being forced into this option as with many other DSTs, Cove investors will have the choice to participate in a future UPREIT transaction based on their assessment of key financial metrics such as debt levels and dividend sustainability.

With a diversified portfolio encompassing over 3 million square feet across 35 states, Cove Capital Investments is committed to attracting investors who prioritize low-risk opportunities absent of debt dependency. Their offerings, particularly the Cove Texas Build-to-Rent 97 DST, continue to encourage both seasoned and new investors eager to partake in the considerable upside of the BTR market.

About Cove Capital Investments

Cove Capital Investments operates as a Delaware Statutory Trust sponsor, with an extensive history of delivering successful investment opportunities. Their focus remains on maximizing investor returns while ensuring adherence to strong investment principles. Those interested in current offerings, including the Cove Texas Build-to-Rent 97 DST, are encouraged to visit Cove Capital Investments for more information.

As always, potential investors should consider consulting with legal or tax professionals before making investment decisions. Past performance does not guarantee future results.