Cove Capital Completes Acquisition of 170 Unit San Antonio Multifamily 119 DST
Cove Capital Investments, a Delaware Statutory Trust sponsor with a nationwide portfolio exceeding 4.3 million square feet, has completed the acquisition of the Cove San Antonio Multifamily 119 DST, a 170-unit community in northeast San Antonio, Texas.
The property was purchased through a lender’s REO disposition process at a price below both its appraised value and the outstanding loan balance. According to Dwight Kay, Managing Member and Co-Founder of Cove Capital, this created 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 continues to rank among the fastest-growing metropolitan areas in the nation, supported by a diversified economic base that includes advanced manufacturing, data centers, cybersecurity, healthcare, military, logistics, and tourism. The Cove San Antonio Multifamily 119 DST sits near one of the region’s largest industrial and logistics corridors and benefits from major public and private investment anchored by Joint Base San Antonio, Brooke Army Medical Center, 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 arrives as San Antonio’s multifamily market shifts beyond a period of elevated new construction. With new apartment deliveries expected to decline, continued population and employment growth are likely to support absorption of existing inventory, a dynamic that can favor well-located, value-add multifamily assets.
For multifamily operators and investors, the transaction underscores several practical considerations: the potential for acquiring quality assets through REO channels, the importance of rigorous due diligence in lender-led sales, and the role of market fundamentals—employment, population growth, and infrastructure investment—in supporting long-term asset performance.
Multifamily Leadership will continue to track transactions and market trends that illustrate how strategic acquisitions and operational execution intersect to create value across growth markets.