Cove Capital Purchases Two Southwest Properties for $12.8M Offering
Delaware statutory trust company Cove Capital Investments LLC has completed the purchase of a two-property net lease portfolio located in Arizona and New Mexico on behalf of Essential Net Lease Portfolio 90 DST. The debt-free private placement offering, launched earlier this month, seeks to raise nearly $12.8 million in equity from accredited investors.
“This is a 100% occupied debt-free essential net lease portfolio that consists of a FedEx Ground facility in Safford, Ariz., as well as a Tractor Supply in Grants, N.M.,” said Dwight Kay, managing member and co-founder of Cove Capital. “The Cove Essential Net Lease Portfolio 90 DST is what is often referred to as an ‘anchoring’ DST because both properties have long-term net lease agreements in place which can potentially create greater stability during uncertain economic times.”
The company also emphasized Essential Net Lease 90 Portfolio DST’s potential for a 721 exchange rollup as a conceivable 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 Chay Lapin, managing member and co-founder of Cove Capital Investments.
“This means that at the time of any potential future 721 UPREIT transaction, our investors will be able to analyze the final destination [real estate investment trust] 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? And other key components investors must consider prior to participating in a 721 exchange,” added Lapin.
It’s been a busy season for Cove Capital. Earlier this month, it fully subscribed its Northpark Shopping Center Opportunity 78 DST offering in Arkansas. Launched in July 2024, the fund raised a total of $9.1 million of investor equity. And last month, the company fully subscribed its San Antonio Multifamily 74 DST offering, which raised nearly $18.68 million since its September 2024 launch.
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 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 35 states nationwide.
Click here to visit the AltsWire directory page.
