The latest distribution increase aligns with the investment’s Private Placement Memorandum, highlighting the success of Cove Capital’s debt-free acquisition model, and overall property strategy emphasizing rental rate increases and strict expense controls.
LOS ANGELES, Nov. 22, 2024 /PRNewswire/ — Dwight Kay and Chay Lapin, Managing Members and Founding Partners of Cove Capital Investments—a Delaware Statutory Trust sponsor company specializing in debt-free DST offerings—announced an increase in annual distributions, paid monthly, for investors in the Cove Thistlewood Townhomes Delaware Statutory Trust offering, a Regulation D, Rule 506c offering. The offering consists of a high quality townhome community in the heart of Clarkesville, TN. Acquired in 2018, this offering is believed to be the first-ever all-cash/debt-free multifamily Delaware Statutory Trust offering.
According to Kay, the most recent annualized distribution rate for the Thistlewood Townhomes DST, a debt free DST with no risk of lender foreclosure, increased by 2.72% over the same period a year ago. This marks the sixth consecutive DST distribution rate increase for these 1031 exchange investors in the past six years.
* Past performance does not guarantee future results. Please read full disclosures of risk in each offerings Private Placement Memorandum (PPM) prior to considering any DST investment.
“When we acquired the Cove Thistlewood Townhomes DST, we quickly identified it as an attractive asset that could potentially benefit from our institutional level of management and operational expertise. Since bringing this multifamily DST community into our portfolio, we have focused on reducing Loss-to-Lease (LTL) and aligning rents to market rate, enhancing curb appeal, and expanding marketing efforts to raise visibility of the asset. As a result, we have increased our Net Operating Income, tenant occupancy, expense reduction and management control – all of which has allowed us to consistently increase distributions to our 1031 exchange DST investors. In addition, we anticipate potentially seeing continued distribution increases throughout the hold period,” said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.
“For our DST investors, we consider this an incredible win to be able to deliver an increasing distribution rate as outlined in our PPM, payable monthly, in a time where many multifamily real estate sponsor companies have had to lower monthly distributions due to unforeseen expense increases and rent growth stagnation. Of course, there are no guarantees for positive returns in the future however we feel confident that the Cove Capital debt-free Thistlewood Townhomes Delaware Statutory Trust strategy will continue to serve us and our 1031 exchange investors well over the bright future ahead,” said Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments.
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].
Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This material is not to be considered tax or legal advice. Please speak with your attorney and CPA before considering an investment. All offerings discussed, if any, are Regulation D, Rule 506c offerings. Past performance is not a guarantee of future results. Securities offered through FNEX Capital, member FINRA, SIPC.
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SOURCE Cove Capital Investments
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