Cove Capital Acquires Trio of Properties as Part of Its Net Lease Industrial 77 DST
Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced it has successfully completed the purchase of three net lease industrial distribution centers. The purchase is the firm’s Cove Net Lease Industrial 77 DST, a Regulation D, Rule 506(c) offering targeting to raise nearly $13.4 million.
“We are excited to add three additional industrial net lease distribution assets to our Cove portfolio,” said Dwight Kay, managing member and founding partner of Cove Capital Investments.
According to Kay, the assets were purchased by Cove Capital as part of its growing portfolio of debt-free DST real estate assets for 1031 exchange and direct cash investors.
“The Cove Net Lease Industrial 77 DST consists of a strong tenant lineup – two Frito Lay distribution centers in Texas and a FedEx ground distribution center in Arkansas – and provides our investors with a diversified and strong essential net lease DST portfolio that is potentially both recession and pandemic resistant,” added Kay.
Like other Cove Capital acquisitions such as Rogers Business Park Opportunity 73 DST in Texas and Cove Net Lease Distribution 66 DST in Virginia, the Cove Net Lease Industrial 77 DST was acquired with 0% leverage for investors.
“The two newly constructed Texas distribution centers both have 10-year industrial net leases with annual rental increases. The third distribution center is located in Arkansas and the tenant has shown strong commitment to the location thru a recent lease extension,” said Chay Lapin, Cove Capital managing member and founding partner.
“Our Cove acquisitions team identified these three assets as an excellent addition to our Cove portfolio. Like many of Cove Capital’s real estate acquisitions, the Cove Net Lease Industrial 77 DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps. This offering … provides meaningful monthly income potential to our investors via in place leases,” said Lapin.
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible DST properties, as well as other real estate investment offerings. The team consists of acquisitions, asset management, accounting, due diligence, in-house counsel, investor relations, marketing, and capital markets. Cove Capital has sponsored over 2.3 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 33 states nationwide.
For more Cove Capital news, please visit their directory page.
