The latest distribution increase highlights the success of Cove Capital’s investment strategy carefully outlined in its Private Placement Memorandum. The multifamily DST offering was a Regulation D, Rule 506c offering and launched for accredited investors in October 2021.
TORRANCE, Calif., Dec. 3, 2024 — Dwight Kay and Chay Lapin, Managing Members and Founding Partners of Cove Capital Investments—a Delaware Statutory Trust sponsor company—announced an increase in annual distributions, paid monthly, for investors in the Cove Houston Multifamily 42 Delaware Statutory Trust offering.
According to Kay, the most recent annualized distribution rate for the Cove Houston Multifamily 42 DST is noteworthy, given that many multifamily operators are currently facing difficulties in maintaining monthly distributions to investors due to expense creep and rent growth stagnation.
“In today’s rising interest rate and inflationary environment with increased operational costs, and a slowdown in rent growth in certain markets, many multifamily owners are experiencing squeezed cash flows and reduced net operating income which can potentially reduce investor distributions. The Cove team, through conservative underwriting and analysis at the acquisition of this asset, is extremely pleased to announce another distribution rate increase for our investors in these trying times. Although past performance doesn’t ever guarantee any future results, we are pleased to have provided this level of performance to our investors in this DST thus far,” explained Kay.
The Cove Houston Multifamily 42 DST consists of a premier Class A apartment community in the Montrose Neighborhood – one of Houston’s most vibrant and historic neighborhoods. The 50-unit community was was constructed 2020 and highlighted spectacularly designed floor plans and designer details like quartz countertops, full size washer and dryers in each unit, stainless steel appliances, 8-foot doors, 42-in soaking bathtubs, smart HVAC controls, and high-tech security access points and parking areas.
“The combination of the building’s irreplaceable location in one of Texas’ most sought-after submarkets and the appealing aspects of the building architecture and amenities, made it an extremely unique investment opportunity for our investors. We are proud to be able to increase our monthly distributions for our investors as outlined in the offerings PPM,” explained Lapin.
About Cove Capital Investments
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. Over 1,800 investors have trusted Cove Capital with their 1031 exchange and investment dollars, many of them being repeat investors in multiple DST offerings over the years. Our offerings are attractive to those investors seeking to lower risk potential as the majority of Cove Capital’s DST offerings are debt free (no mortgage – no lender foreclosure risk). To sign up for a list of the current Cove Capital offerings available for 1031 exchange and direct investments please visit www.covecapitalinvestments.com.
For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at (877) 899-1315 and via email at [email protected].
*Past performance is no guarantee of future results.
* Diversification does not guarantee profits or protect against losses.
*This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. This material contains information that has been obtained from sources believed to be reliable. However, Cove Capital Investments, LLC does not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances. Securities offered through FNEX Capital, member FINRA, SIPC.
SOURCE Cove Capital Investments
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