Top1031

Pleasant Creek Apartments

Multifamily property in Lancaster, TX — sponsored by Cove Capital Investments

Files with the SEC as Cove Dallas Multifamily 59 DST

Minimum investment
$1k
Offering size
$32.5M
How much has sold
18.0%
Asset type
Multifamily property
Location
Lancaster, TX
Financing
All cash. This offering reports no mortgage debt.

Sponsor-reported, from SEC filings and cited sources.

Chapter 1

What is this, in one paragraph?

Cove Dallas Multifamily 59 DST is a Delaware Statutory Trust — a passive, 1031-eligible co-ownership vehicle — holding Pleasant Creek Apartments, an apartment community built in 1983 about 15 miles south of downtown Dallas in Lancaster, Texas.2 Cove Capital Investments acquired it with no mortgage in September 2022 and reported the offering fully subscribed at $32,493,647 of equity on January 17, 2024.3

Show sources (11)Hide sources (11)

These links support the historical public record; individual details may come from different sources.

On a 45-day clock? Find day 45 and day 180 from the sale date, then come back to this record.

Chapter 2

What exactly is the property?

The property sits at 1255 West Pleasant Run Road in Lancaster, Texas.1 Built in 1983, it is a two-story community of 16 buildings roughly 15 miles south of downtown Dallas, with one-, two- and three-bedroom floorplans.2 Cove bought it as a value-add deal: prior owners had spent more than $1.5 million upgrading about half the units, and Cove said it planned quartz countertops, stainless-steel appliances, plumbing and lighting work, and carports.2

Reported location
Lancaster, TX
Property size
159 units; 130,128 square feet
Chapter 3

Who is the tenant, and what's the lease?

There is no single tenant here. Income comes from residents on short-term apartment leases that reprice as they roll, so cash flow tracks local rents and occupancy rather than one corporate credit. No property-level lease terms or occupancy figure was found in the public record.

Chapter 4

How did it end?

What happened

No sale or other ending on record

Cove Dallas Multifamily 59 DST remains active per Cove Capital's current-offerings page (159-unit Pleasant Creek, Lancaster, TX) and an AltsWire/PR Newswire report from Nov 2024 documenting a 15% YoY distribution increase, with no full-cycle sale, foreclosure, or 721 UPREIT conversion announced.

Pleasant Creek Apartments is a single 159-unit, 130,128-square-foot value-add community; Cove described the offering as Regulation D Rule 506(c), debt-free/all-cash, and launched in August 2022. PR Newswire reports $32,493,647 of equity and explicitly states the DST was fully subscribed.

159 units; 130,128 square feet
Supporting evidence
Chapter 5

How is it financed, and what does it pay?

The Trust holds the property with no mortgage on it — what the sponsor calls debt-free: no lender, no loan maturity to refinance, and no possibility of a lender foreclosing on the investors' interests.3

Financing
All cash. This offering reports no mortgage debt.
Chapter 7

What does the paperwork say?

The SEC file is short: an initial Form D — the brief notice of an exempt private offering — plus one amendment updating sales, both filed in 2022. Rule 506(c) let Cove advertise the Trust publicly, provided every investor's accredited status was verified.

  1. First Form D filedThe public offering record begins.
  2. Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
Filings on record
2
How it may be offered
Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
Source filing
Read the filings on SEC EDGAR

A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.

DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current Private Placement Memorandum before investing.

Chapter 8

Common questions

What happened to Pleasant Creek Apartments?

Top1031 lists Pleasant Creek Apartments as historical. It is no longer raising money.

Where does Top1031 get the data for Pleasant Creek Apartments?

Top1031 builds this record from the sponsor’s own SEC filings and cited sponsor disclosures. Filings can lag what is happening now. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.

Can I still invest in Cove Dallas Multifamily 59 DST?

No. Cove Capital Investments announced on January 17, 2024 that the Trust was fully subscribed, with total equity raised of $32,493,647. It is closed to new investors, and no Form D amendment has been filed since September 20, 2022.

What does "debt-free" or all-cash mean for a DST like this one?

It means the Trust owns the property outright, with no mortgage against it. There is no loan to refinance at maturity and no lender that could foreclose. It also means no mortgage debt is passed through to investors, which matters if your relinquished property had debt you need to replace in the exchange — a point to work through with your tax adviser and the PPM (the private placement memorandum, the offering's full disclosure document).

Who is the tenant?

There isn't one. This is a 1983-built apartment community, so revenue comes from many residents on short-term leases rather than a single corporate tenant on a long-term net lease.[2] No occupancy percentage or rent roll detail was located in public sources.

Has Cove reported anything about how the property is performing?

Yes. On November 5, 2024, Cove Capital Investments announced that the most recent annualized distribution rate for this Trust was 15.50% higher than the same period a year earlier, and described it as the third consecutive annual increase in three years, totaling 23.42%; the announcement did not state the underlying rates.[4] Cove attributed the increase to renovation work, rental rates, tenant occupancy and expense controls.[4] These are sponsor-reported figures for completed periods, not projections.

Could this Trust convert into a REIT through a 721 exchange?

The record shows no 721/UPREIT exit contemplated — that is the structure where a DST's property is eventually contributed to a REIT's operating partnership in exchange for OP units. Here the filing data indicates no such conversion path, so an exit would be expected to come from a sale of the property.

What does the SEC record actually show about the raise?

Two filings: the original Form D on August 23, 2022 and a single amendment on September 20, 2022. The amendment's sales figures are a snapshot from that date and predate Cove's January 2024 announcement that the offering was fully subscribed, so the SEC file alone understates the final raise.

Chapter 9

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