C
ove Capital Investments has bolstered its local portfolio with the acquisition of a five-story apartment complex just west of downtown San Antonio. The California-based firm, led by founding partners Dwight Kay and Chay Lapin, purchased the 102-unit Peanut Factory Lofts at 939 South Frio Street in the Central City neighborhood for an undisclosed price. According to the Bexar Appraisal District, the property's value is assessed at $16.9 million.

    Cove Capital plans to raise $18.6 million from investors to support the acquisition and has already secured $2.7 million from 15 investors. The company aims to improve management of the property, which is currently 93 percent leased, and address delayed maintenance issues. The previous owner, Windmill Investments, had been under pressure to sell due to an upcoming loan deadline.

    The San Antonio multifamily market faces significant challenges, including plummeting construction starts, declining rental rates, and high interest rates. This has led to a sluggish investment market, with most sales driven by looming maturities rather than demand for new properties.