Cove Capital Seeks $11.3M for Debt-Free Birmingham Industrial DST
Cove Capital Investments has acquired a 90,465-square-foot industrial distribution facility in Birmingham, Ala., to form Essential Birmingham Industrial 129 DST, a debt-free Delaware statutory trust offering under Regulation D, Rule 506(c) targeting $11.33 million in equity from accredited investors, including those completing 1031 exchanges.
The offering had raised nearly $2.1 million from nine investors as of Oct. 22. The minimum investment is $1,000, and the DST recorded its first sale Sept. 30.
Cove bought the property in an all-cash transaction and projects a 5% distribution for investors, the company told AltsWire. The sale closed Sept. 18, according to Colliers, which had listed the property at an asking price of $9.8 million. Cove declined to disclose the final purchase price or the seller, citing the deal documents.
The property, located at 4300 Coalburg Road, is a FedEx Express regional distribution center, according to Colliers, which marketed the property for sale. Cove did not name the tenant, which it described as a multinational courier and logistics company with a BBB credit rating from S&P that fully leases the property. The facility serves as a hub for the greater Birmingham area and includes 30 dock doors, 51 trailer spaces, a vehicle maintenance building, and heavy-freight capabilities on an 11-acre site near Interstates 20/59, 65, and 22. The region also has Class I rail service and inland port infrastructure, the company said. The net lease runs through April 2037 after a recent 10-year extension, according to Colliers.
The tenant has occupied the facility since its construction in 1997, said Dwight Kay, Cove managing member and founding partner.
“It potentially says a lot about a location when a tenant has continuously occupied an asset for approximately 28 years. Their commitment to the location can also be reflected in the tenant’s decision to recently extend their lease for an additional ten years,” Kay said.
“One of the reasons we believe investors will be potentially attracted to this asset is its proximity to Birmingham and the role it plays as a regional logistics, manufacturing, and distribution hub connecting major Southeastern markets like Atlanta, Nashville, Memphis, and New Orleans,” said Chay Lapin, Cove managing member and founding partner.
The offering includes a 721 exchange option – a tax-deferred strategy that converts DST interests into shares of a real estate investment trust – as a potential exit, according to Cove.
The Birmingham offering is Cove’s second Alabama industrial DST this year, after the firm launched its Essential Net Lease Industrial 114 DST, a roughly $12.1 million offering for a build-to-suit distribution facility in Mobile, Ala., which Cove said in September was fully subscribed. The deal also returns Cove to Birmingham, where its Eastwood Village Opportunity 71 DST sought nearly $22.8 million in 2024 for a multitenant retail center.
Cove also fully subscribed its Essential Net Lease Industrial 108 DST in September, raising about $9.96 million for an Anchorage, Alaska, distribution facility that is also leased to an unnamed national logistics operator.
Industrial accounted for 39% of syndicated DST offerings on the market at the end of September, according to Mountain Dell Consulting. DST sales totaled $7.52 billion through September, up 27% from the same period in 2025, and Mountain Dell projects about $10.2 billion for the full year.
Cove said it operates more than 4.5 million square feet of real estate across 141 properties and that more than 2,900 investors have invested with the firm.
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