This latest distribution increase is in line with the investment’s Private Placement Memorandum, showcasing the success of Cove Capital’s debt-free acquisition strategy and property management approach focused on rental increases and cost control.

LOS ANGELES, Nov. 22, 2024 — Dwight Kay and Chay Lapin, Managing Members and Founding Partners of Cove Capital Investments—a Delaware Statutory Trust sponsor specializing in debt-free DST offerings—announced a rise in annual distributions, paid monthly, for investors in the Cove Thistlewood Townhomes Delaware Statutory Trust, a Regulation D, Rule 506c offering. This offering comprises a high-quality townhome community in Clarkesville, TN. Acquired in 2018, this is believed to be the first all-cash/debt-free multifamily Delaware Statutory Trust offering.

According to Kay, the most recent annualized distribution rate for the Thistlewood Townhomes DST, a debt-free DST eliminating lender foreclosure risk, increased by 2.72% year-over-year. This marks the sixth consecutive annual distribution rate increase for these 1031 exchange investors over six years. 

* Past performance does not guarantee future results. Please review the complete risk disclosures in each offering’s Private Placement Memorandum (PPM) before considering any DST investment.

“Upon acquiring the Cove Thistlewood Townhomes DST, we recognized its potential given our management expertise. Since then, we’ve focused on reducing Loss-to-Lease (LTL), aligning rents with market rates, improving curb appeal, and enhancing marketing. This has led to increased Net Operating Income, higher occupancy, reduced expenses, and better management control—all contributing to consistent distribution increases for our 1031 exchange DST investors. We anticipate further distribution increases throughout the investment period,” said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.  

“For our DST investors, this represents a significant achievement—delivering rising monthly distributions as outlined in our PPM, in a market where many multifamily sponsors have had to reduce distributions due to rising expenses and stagnant rent growth. While future returns are not guaranteed, we’re confident that the Cove Capital debt-free Thistlewood Townhomes Delaware Statutory Trust strategy will continue to benefit us and our 1031 exchange investors,” 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 managing over 2.4 million square feet of real estate across 33 states. Over 1,800 investors have entrusted Cove Capital with their 1031 exchange and investment funds, many being repeat investors. Our offerings appeal to those seeking lower risk, as most are debt-free (no mortgage, no lender foreclosure risk). To view current Cove Capital offerings for 1031 exchange and direct investments, please visit .

For more information, please visit or contact Cove Capital at (877) 899-1315 and via email at .

Diversification does not guarantee profits or protect against losses. All real estate investments offer no guarantees regarding cash flow, distributions, or appreciation and may result in total loss of principal. Please read the entire Private Placement Memorandum (PPM) before investing. This is not tax or legal advice. Consult your attorney and CPA before investing. All offerings mentioned are Regulation D, Rule 506c offerings. Past performance is not indicative of future results. Securities offered through FNEX Capital, member FINRA, SIPC.

SOURCE Cove Capital Investments

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