Cove Capital Fully Subscribes $9.3M Fort Worth Industrial DST
Cove Capital Investments has fully subscribed its Fort Worth Small Bay Industrial 96 DST, a Regulation D, Rule 506(c) offering, raising approximately $9.3 million in equity from accredited 1031 exchange and direct cash investors.
The debt-free Delaware statutory trust holds a 53,300-square-foot, four-building flex industrial park in the North Fort Worth submarket, with access to Highway 287, Highway 114, and Interstate 35. The property is leased to a mix of industrial tenants; Cove said its business plan centers on lease renewals, extending tenant occupancy, and capturing rental rate growth as leases mature, with additional upside potential from industrial outdoor storage use.
“The Fort Worth Small Bay Industrial 96 DST represents another opportunity to provide investors with a thoughtfully structured, debt-free industrial DST investment in a market benefiting from exceptional population growth, business expansion and long-term demand for flexible industrial space,” said Dwight Kay, managing member and founding partner of Cove Capital Investments.
Chay Lapin, managing member and founding partner of Cove Capital, said the firm’s principals invested alongside the offering’s investors, consistent with the sponsor’s practice on many of its DSTs. Cove’s debt-free approach, Lapin said, removes refinancing risk, lender foreclosure risk, and interest-rate sensitivity from the investment.
The offering also carries the potential for a 721 exchange rollup – a tax-deferred strategy that converts DST interests into real estate investment trust shares – as an optional exit. Kay said any future 721 transaction would remain entirely optional, giving investors the ability to evaluate the destination REIT, including its debt levels, dividend coverage, and tax protection terms, before deciding whether to participate.
The subscription follows Cove’s Ponder Small Bay Industrial 101 DST, a 19-building small bay industrial offering in North Texas that fully subscribed in June after raising nearly $18.7 million.
Cove Capital Investments is a DST sponsor with more than $1.1 billion in DST and real estate offerings and a portfolio of 137 properties totaling more than 4.28 million square feet across 36 states. More than 2,700 investors have invested with the firm, many as repeat investors across multiple offerings.
For more Cove Capital news, visit its directory page.
