December 2019 – Looking Back, Looking Ahead

December has been a time of reflection here at Cove Investments. As the days grow short and the new year (decade) approaches we’ve been thinking about how we can better serve our investors and our broader community of investors, partners, and friends.  

By conventional measures, our first year has been a rousing success. Cove Investments participated in 4 deals consisting of more than 1,000 apartment units with a transaction value (equity and debt) exceeding $80 million.

While acquisitions are important milestones, that’s not how we measure success. Anybody can buy a property. It’s easy to overpay. Our results will be evaluated only after many months of renovation programs, asset repositioning, cash distributions and ultimately, an exit.

Still, we take great pride in knowing that we’ve helped guide dozens of investors through this often unfamiliar process. We’ve helped our investors identify opportunities around the US, we’ve vetted the sponsors, and we’ve invested our own money in every deal that we’ve recommended. Our investors trust our due diligence and we take that responsibility very seriously. 

Looking Forward to 2020

While 2019 has been a good year, we believe that we can always improve. We’re just getting started. And we hope you’ll appreciate some of the changes we’re making in the coming year. 

Our general business and market updates will now arrive on a quarterly basis. But you can expect more frequent, brief emails on specific topics of interest. These will be in the form of blog posts with links to more detail for those who want to dig deeper.

We think it’s also possible that we will participate in fewer deals this year. This reflects a more competitive environment for assets, but also a view that by investing more in a given opportunity, our investors will have a more significant seat at the table. In some cases, this may result in more favorable financial terms. In all cases, it will ensure that our interests have more influence in the partnership.

Some things will remain the same. You can still expect rigorous due diligence of sponsors and investment opportunities. You can also expect transparency, high ethical standards, and ongoing oversight of investments. When the deal closes, the work only begins.

For example, last week we visited two properties in Atlanta with our partners for an update on our value-add renovation program. Our sponsors will visit the property monthly and hold weekly (or more frequent) calls with our property managers, but it’s important to Cove Investments that your trusted advocate also remains engaged.