Cove Capital Fully Subscribes $9.1M Retail DST in Arkansas
Delaware statutory trust company Cove Capital Investments LLC has fully subscribed its Northpark Shopping Center Opportunity 78 DST offering. Launched in July 2024, the fund raised a total of $9.1 million of investor equity.
“We are extremely pleased to have fully subscribed Cove’s Northpark Shopping Center Opportunity 78 DST,” said Dwight Kay, managing member and founding partner of Cove Capital Investments. “We continue to see strong demand for the multi-tenant retail asset class from 1031 exchange investors who are seeking tax advantaged investments with the added benefit of zero debt.”
According to Kay, Northpark Shopping Center Opportunity 78 DST appealed to investors for several reasons, including that the asset was purchased below replacement cost and it showed strong tenant commitment to the location.
“We felt confident our value-add business plan set forth in the private placement memorandum would appeal to investors, broker-dealers, and [registered investment advisers]. In addition, due to our strategy of buying properties debt free, the offering has meaningful distribution potential to our investors payable by monthly ACH direct deposit,” said Kay.
The 71,068-square-foot shopping center occupies a prime location in Monticello, Arkansas, situated at the high-traffic intersection of Highway 278 West and Highway 425 North. With over 30,000 vehicles passing daily, the property serves as a key economic hub for the region.
“Because of the high traffic nature of this shopping center, the majority of our tenants are strong national brands who have an average tenant tenure of 21 years. We feel very good about having this asset in the Cove Capital portfolio,” said Chay Lapin, managing member and founding partner of Cove Capital Investments.
It’s been a busy season for Cove Capital. Just last month, the company fully subscribed its San Antonio Multifamily 74 DST offering, which raised nearly $18.68 million since its September 2024 launch; the sponsor also recently acquired a 26,795-square-foot FedEx distribution center located in Sierra Vista, Ariz. The industrial asset – located less than 1,000 feet from U.S. Highway 90, which is the primary thoroughfare that connects this part of Arizona to Interstate 10 – comprises Essential Net Lease Industrial 87 DST and seeks to raise approximately $5.88 million in equity.
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 2.5 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 33 states nationwide.
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