Los Angeles, CA – Cove Capital Investments has completed the purchase of an 83-unit build-to-rent residential community in San Antonio, Texas, finalizing its Cove Texas Build-to-Rent 97 Delaware Statutory Trust (DST) offering. The $27.2 million equity raise opportunity is structured entirely without debt, a move the company says enhances investor protection and eliminates foreclosure risk.
The newly constructed single-family rental homes average 1,861 square feet and feature high-end finishes along with resort-style amenities, including a pool and lazy river. The community, built in 2024, had a 95% occupancy rate as of July 30, 2025, and is located near major employers and top-rated schools. Cove Capital says potential rent increases as leases renew could further grow revenue and net operating income.
Founding partner Dwight Kay called the property a “trophy asset” in one of San Antonio’s most desirable submarkets, while co-founder Chay Lapin highlighted the optional 721 Exchange rollup as a possible exit strategy for investors. This feature allows participants to decide whether to convert into an UPREIT in the future, depending on the REIT’s financial and operational metrics.
Cove Capital acquired the property below appraised value, citing the debt-free structure as a factor in securing favorable terms. Company principals are also investing their own capital into the offering, which they say aligns their interests with those of investors.
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Key Points
- Cove Capital purchases 83-unit San Antonio build-to-rent community debt-free for DST offering
- Homes average 1,861 sq ft with resort-style amenities; occupancy at 95%
- Optional 721 Exchange rollup could serve as a future investor exit strategy
