Projects

At Cove Investments, we rigorously screen a wide range of projects and sponsors, presenting only the most attractive opportunities to our investors. We also believe it’s critical to have “skin in the game” and therefore continue to invest our own capital alongside our clients. We expect and require our sponsors to do the same.

Project Characteristics

• Apartment buildings and student housing properties of 75-250 units for optimal scale
• Strong markets / sub-markets with rent growth supported by growth in population, jobs, and income
• B/C class assets with rents currently below market, with a value-add (renovation) strategy to force appreciation. (What is the difference between class levels in these investment opportunities?)
• Experienced partners with deep local knowledge and resources on the ground. (How does Cove Investments find its sponsors?)
• Use of cost segregation to maximize depreciation benefits for investors  

Target Financial Return Characteristics

• >100% total return over 5-7 years
• High single-digit cash-on-cash returns with monthly or quarterly cash distributions to investors
• A minimum of 10-15% IRRs with conservative underwriting

See below for several transactions in which Cove Investments has participated: