**Cove Capital and Capital Square Acquire Build-to-Rent Communities in Texas**
Cove Capital Investments and Capital Square have each expanded their portfolios with the acquisition of build-to-rent (BTR) communities in the San Antonio area.
Cove Capital completed the purchase of a brand-new BTR multifamily residential home community, finalizing the formation of its Cove, Texas, Build-to-Rent 97 DST. This is a Regulation D, Rule 506(c) offering supported by a $27.2 million equity raise. The community includes 83 newly constructed single-family rental homes and boasts high-end, resort-style amenities.
Additionally, Cove Capital announced details of its Cove Dallas Build-to-Rent 87 DST offering, which was constructed in 2024 by DR Horton. The 95% occupied property still has room for potential rental rate growth as existing leases turn over in the coming months. Notably, Cove Capital acquired the asset debt-free and at a price below appraised value, creating an immediate value-add opportunity.
Capital Square also made a strategic acquisition with the purchase of Woodland Cottages, a 62-unit adult-targeted BTR community located at 161 Friendship Lane in Fredericksburg, Texas. This project supports Capital Square’s CS1031 Texas Active Adult Living I DST, which is geared towards 1031 exchange investors.
These transactions reflect increased investor interest in the growing Texas BTR market and signify continued demand for quality, single-family rental homes with community amenities.
