San Antonio, August 24, 2025
News Summary
Cove Capital Investments has acquired a $27.2 million Build-to-Rent (BTR) multifamily community in San Antonio. This acquisition includes 83 single-family units, each averaging 1,861 square feet with resort-style amenities, strategically located near key employers and schools. This move highlights the rising demand for rental housing in the face of escalating home prices. The Cove Texas Build-to-Rent 97 DST aims to provide investors with significant returns amidst ongoing housing market challenges.
San Antonio
Cove Capital Investments has successfully acquired a $27.2 million Build-to-Rent (BTR) multifamily community in San Antonio, Texas, marking a significant step in the company’s investment strategy. This acquisition fulfills the formation of the Cove Texas Build-to-Rent 97 DST (Delaware Statutory Trust) and includes an equity raise of $27,223,181.
The newly constructed community comprises 83 single-family rental units designed to meet the rising demand for quality rental housing. Each unit averages 1,861 square feet and incorporates high-end, resort-style amenities. Key features include a resort-style pool and a lazy river, catering to the lifestyle needs of potential tenants.
Located in one of San Antonio’s most desirable submarkets, this residential community is strategically situated near major employers and highly rated schools. This advantageous location enhances its appeal to families and young professionals alike, further indicating the strength of the investment.
The Cove Texas Build-to-Rent 97 DST comes on the heels of the Cove Dallas Build-to-Rent 87 DST, which, as of July 30, 2025, has reported an impressive 95% occupancy rate. The existing demand for BTR properties continues to increase as young families struggle to secure homeownership amidst rising home prices and mortgage rates, making rental options a more viable alternative.
Investment Rationale
This investment offering is categorized under Regulation D, Rule 506(c), providing potential opportunities for significant returns for investors. As leases expire, rental rates can be adjusted, potentially yielding higher returns on investment.
The BTR asset class is presently thriving due to the ongoing challenges of home affordability, positioning it as a vital solution in constrained housing markets. Investors are increasingly looking to BTR properties to not only meet current housing needs but also to hedge against inflation.
Tenants benefit from the flexibility of lease agreements, which alleviates some financial burdens typically associated with homeownership, such as rising insurance costs and maintenance expenses. The growth of the BTR sector aligns with shifting preferences among Millennials and Gen Z who prioritize affordability and desirable living conditions in suburban areas close to urban centers.
Key Features
| Feature | Details |
|---|---|
| Location | San Antonio, Texas |
| Purchase Amount | $27.2 million |
| Community Size | 83 units |
| Average Unit Size | 1,861 sq. ft. |
| Occupancy Rate (Cove Dallas BTR 87 DST) | 95% |
| Amenities | Resort-style pool, lazy river |
| Investment Type | Regulation D, Rule 506(c) |
Timeline
| Date | Event | Status |
|---|---|---|
| July 2025 | Occupancy rate of Cove Dallas BTR 87 DST reported | 95% Occupied |
| October 2025 | Completion of Cove Texas Build-to-Rent 97 DST acquisition | Completed |
FAQs
What is the Cove Texas Build-to-Rent 97 DST?
The Cove Texas Build-to-Rent 97 DST is a newly acquired residential community in San Antonio consisting of 83 single-family rental units designed for long-term rental purposes.
Why is there a growing demand for Build-to-Rent properties?
There is an increasing demand for Build-to-Rent properties primarily due to rising home prices and mortgage rates, making it difficult for young families to achieve homeownership.
What are the benefits for investors in Build-to-Rent properties?
Investors benefit from BTR properties by gaining exposure to a growing market that meets housing demand while providing opportunities for income growth through rental increases over time.
Deeper Dive: News & Info About This Topic
HERE Resources
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Texas Housing Market Boom with Affordable Home Surge
North Texas Emerges as Leader in Build-to-Rent Housing
Additional Resources
- Multifamily Biz: Cove Capital Investments Acquires BTR Community
- Wikipedia: Build-to-Rent
- IREI: Cove Capital Completes 83-Unit BTR Acquisition
- Google Search: Build-to-Rent San Antonio
- Connect CRE: San Antonio BTR Communities Trade Hands
- Google Scholar: Build-to-Rent
- WFAA: DFW Leads Build-to-Rent Boom
- Encyclopedia Britannica: San Antonio
- The Mortgage Point: Assisting US Housing Supply
- Google News: Build-to-Rent
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
