Cove Capital Investments Announces It Has Successfully Taken Full-Cycle a Multifamily Delaware Statutory Trust Offering on Behalf of Investors, Delivering an 18.29% Average Annualized Return*

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Oct 26, 2022, 15:35 ET

After being sold for $8.14 million, the Cove Missoula, MT Multifamily DST successfully delivers uninterrupted distributions for Cove Capital investors as well as meaningful appreciation while also reinforcing the firm's commitment to providing debt-free investment options for its investors during today's uncertain times

Key Highlights:

Cove Capital takes a debt-free multifamily DST property Full-Cycle
Cove Capital's Due Diligence team correctly anticipated the Missoula location and lack of inventory coupled with high demand created a favorable investment environment.
Cove Capital continues to lead the market in providing investors unleveraged investment options for 1031 exchange and direct cash investments.
The DST investment realized an 18.29% average annualized return for investors*
The Cove Capital Missoula Multifamily DST offering successfully delivered uninterrupted monthly distributions throughout the hold period and throughout the COVID-19 pandemic.
Debt-Free, unleverages monthly distributions, meaningful equity growth, and appreciation for Cove 1031 exchange and DST all cash investors.*

LOS ANGELES, Oct. 26, 2022 /PRNewswire/ -- Cove Capital Investments, a private equity real estate firm and DST sponsor company that specializes in providing accredited investors access to debt-free DST investment options for their 1031 exchange and direct cash investments, announced it successfully brought its strategically located Cove Missoula Multifamily DST offerings full cycle on behalf of multiple 1031 exchange and direct cash investors.

"Full Cycle" is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.

According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, the Missoula, MT DST investment sold for $8,140,000 on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the same day that the property was purchased, realized an impressive 149.21% total return on their investments, or a 18.29% average annualized return from their DST 1031 investment*.

"The strategically located property was offered to investors as a debt-free investment option to provide a lower-risk profile for both 1031 Exchange and direct cash investors. We are very pleased to have provided another successful custom DST investment opportunity for our clients that resulted in a full-cycle liquidity event with meaningful equity growth and appreciation*," said Kay.

Most significantly, Kay noted that Cove Capital was able to provide its investors uninterrupted monthly distributions throughout the hold period and during the entire COVID-19 pandemic, a significant accomplishment considering the volatility of all investments during the Coronavirus pandemic.

"While past performance does not guarantee or indicate the likelihood of future results, our Missoula Multifamily DST is another great example of how Cove Capital has created a contrarian approach to other investment models," said Kay.

According to Kay, Cove is committed to providing investors debt-free offerings specifically designed to mitigate the potential risks associated with leveraged real estate offerings while also providing greater flexibility for its investors when it comes time to selling.

"We believe this strategy is highly prudent considering the many uncertainties surrounding today's investment markets. Furthermore, the positive return and equity growth of this investment marks a significant victory for our investors, another successful outcome for Cove's portfolio of debt-free offerings, and a reflection of the vision and trust displayed by the entire Cove family that includes hundreds of loyal Cove clients, Broker Dealers, Registered Representatives, and Registered Investment Advisors," said Kay.

Cove Capital's Managing Member and Co-Founder Chay Lapin further explained that another appealing component of the Cove Misoulla Multifamily DST was, that it was a high-quality multifamily asset located in a highly desirable location with new construction and significant investment potential.

"Our Cove Capital acquisitions and asset management team recognized that this newly constructed multifamily building, located just a short drive from downtown with tons of amenities, and minutes from the University of Montana, created a potentially favorable investment scenario for our investors. Like all of our investments, this Delaware Statutory Trust asset was carefully vetted by the Cove Capital team of due diligence and analytics experts before we made it available as a debt-free DST to our Cove Capital investment family. The offering's monthly distributions performed exactly as we had projected per the Private Placement Memorandum (PPM). Although we never guarantee any returns, distributions or appreciation and investors need to thoroughly read our offerings PPMs which detail the business plan and risk factors of investing, we are honored to have been able to provide this positive outcome to our investors, many of which are reinvesting via a 1031 exchange into one of Cove Capitals currently available debt-free multifamily DST investment opportunities," said Lapin.

About Cove Capital Investments

Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange eligible Delaware Statutory Trust properties as well as other real estate investment offerings. The Cove Capital team consists of Acquisitions, Asset Management, Accounting, Due Diligence, In-House Counsel, Investor Relations, Marketing and Capital Markets. Cove Capital maintains a robust current inventory of DST and private equity real estate offerings potentially available to investors. Cove Capital Investments has sponsored the syndication of over 1.5 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors. The principals of Cove Capital Investments seek to invest alongside investors in each of their offerings.

For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at (877) 899-1315 and via email at [email protected].

* Past performance does not guarantee or indicate the likelihood of future results. 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 case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.

* Annualized return is defined as a total return including profit on sale and monthly distributions earned on an annualized basis.

** Total return consists of initial return of investor principal, monthly distributions, and profit upon sale.

*** All return calculations are calculated as if the investor closed on the DST investment at the same time the property was purchased.

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. Securities offered through FNEX Capital, member FINRA, SIPC.

SOURCE Cove Capital Investments