Cove Capital Launches Florida Industrial DST, Aiming to Raise $12M
Cove Capital Investments LLC has completed the purchase of a distribution center in Florida. The acquisition establishes Cove Florida Industrial 98 DST, a Regulation D, Rule 506(c) Delaware statutory trust offering that seeks to raise more than $11.97 million in equity.
The company said the asset’s location in Fort Walton Beach, Fla., strategically connects the rapidly growing markets of Pensacola and Panama City and offers access to the region’s key transportation corridors of Interstate 10 and U.S. Highway 98.
“This essential industrial asset is a brand new distribution warehouse 100% occupied by a leading worldwide brand,” said Dwight Kay, managing member and co-founder of Cove Capital. “The asset features nine loading docks and abundant yard space for truck loading and parking, and even the ability to further expand the facility with additional square footage in the future.”
According to Chay Lapin, managing member and co-founder of Cove Capital, another compelling aspect of the offering is that it has the potential for a 721 exchange rollup as a potential exit strategy.
“Instead of signing up today in a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not – at their discretion,” said Lapin. “This means that at the time of any potential future 721 UPREIT transaction, our investors will be able to analyze the final destination REIT by examining key areas such as: REIT debt levels, dividend coverage ratios, the use of floating rate debt, does the REIT offer 721 investors a tax protection agreement? If so, how long is it for?”
Earlier this month, Cove Capital launched another DST offering, Diversified Portfolio 94 DST, that aims to raise nearly $15.6 million in equity. The Norton, Va., asset within that portfolio consists of a net lease industrial facility for an established essential business tenant, and features seven loading docks and abundant yard space to potentially expand the facility.
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 3.3 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 35 states nationwide.
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