Dwight Kay and Chay Lapin, Founders of Cove Capital Investments, Announce Another Annual Distribution Rate Increase for Cove Capital's Dallas-Fort Worth-based Multifamily 59 DST Offering

The latest distribution increase highlights the success of Cove Capital's value-add strategy, as outlined in the Private Placement Memorandum when it made the multifamily offering available to accredited investors in 2022.

TORRANCE, Calif., Nov. 5, 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 Multifamily 59 Delaware Statutory Trust offering.  The offerings consists of a debt free 159 unit multifamily apartment community in the Dallas Texas MSA.*

According to Kay, the most recent annualized distribution rate for the Cove Multifamily 59 DST, a debt free DST with no risk of lender foreclosure, increased by 15.50% over the same period a year ago. This marks the third consecutive DST distribution rate increase for these 1031 exchange investors in the past three years, totaling a 23.42% increase over that period. 

* Past performance does not guarantee future results.  Please read full disclsoures of risk in each offerings Private Placement Memorandum (PPM) prior to considering any DST investment.

"When we acquired the Cove Dallas Multifamily 59 DST, we quickly identified it as an asset with the potential for creating predictable monthly distributions for our investors through the quality of the property and our value-add strategy. Since bringing this multifamily DST community into our portfolio, we have completed extensive renovations including improving common areas, and beautifying the property with pool renovations, new landscaping, and exterior cleaning and painting. In addition, we have added stainless steel appliances, upgraded plumbing and lighting fixtures, and installed carports," said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.

Thanks to this successful value-add strategy, the Cove Capital Investments' team has been able to increase annual distributions, driven by higher Net Operating Income from increased rental rates, tenant occupancy levels and intentional expense reduction and controls.

"The Cove Capital Investments' asset team has done a terrific job of increasing Net Operating Income, adding value where appropriate and reducing unnecessary expenses. The result is that the asset is performing to date exactly as we outlined in the Private Placement Memorandum, and while there are never any guarantees, we anticipate to see continued distribution increases throughout the hold period," said Kay.

"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 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 multifamily 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].
*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