Cove Capital Fully Subscribes $9.96M Anchorage Industrial DST
Cove Capital Investments has fully subscribed its Cove Essential Net Lease Industrial 108 DST, a Regulation D, Rule 506(c) offering, raising approximately $9.96 million in equity from accredited 1031 exchange and direct cash investors.
The debt-free Delaware statutory trust holds a 30,554-square-foot industrial distribution facility in Anchorage, Alaska, about five minutes from Ted Stevens Anchorage International Airport, which Cove describes as among the busier cargo airports in the country. The purpose-built facility is leased on a long-term basis to a national logistics operator; Cove did not identify the tenant in its announcement. Cove said the surrounding industrial submarket reported vacancy of about 0.5% as of the third quarter of 2025.
“The successful subscription of Cove Essential Net Lease Industrial 108 DST reflects the continued trust our investors and selling group partners place in Cove Capital and our disciplined approach to sourcing assets nationwide,” said Dwight Kay, managing member and founding partner of Cove Capital Investments.
Chay Lapin, managing member and founding partner, said the firm’s principals invested alongside the offering’s investors, consistent with Cove’s practice on many of its DSTs. “We believe investing our own capital alongside our investors demonstrates our confidence in this opportunity,” Lapin said. Cove’s debt-free approach, Lapin said, removes long-term mortgage financing, refinancing risk, lender foreclosure risk, and interest-rate sensitivity that can accompany leveraged real estate investments.
Kay also pointed to the offering’s optional 721 exchange feature, a tax-deferred strategy that can convert DST interests into shares of a real estate investment trust. “One of the distinguishing features of this offering is the potential for a fully optional 721 exchange. Should a future UPREIT opportunity become available, investors would have the opportunity to evaluate the destination REIT – including its leverage, dividend coverage, floating-rate debt exposure, tax protection agreements, and other important considerations – before determining whether participation aligns with their individual investment objectives,” Kay said.
The subscription follows Cove’s closing of its Fort Worth Small Bay Industrial 96 DST in August, which raised approximately $9.3 million for a four-building flex industrial park in North Texas.
Cove Capital sponsors DST and real estate offerings totaling more than 4.3 million square feet across approximately 138 properties nationwide, according to the firm. More than 2,700 investors have invested with Cove, many across multiple offerings.
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