Cove Capital Wraps $18.7M Raise for North Texas Small Bay Industrial DST
Cove Capital Investments has fully subscribed its Ponder Small Bay Industrial 101 DST Regulation D Rule 506(c) offering, having raised nearly $18.7 million in equity from accredited investors.
Cove Capital launched the offering in November 2025.
The DST offering, according to the company, consists of a 19-building, multi-tenant flex and small bay industrial park located in Ponder, Texas, just minutes from the Dallas-Fort Worth Metroplex. The property is 100% occupied with what Cove described as a diverse and well-established tenant base and offers immediate access to US Highway 380 and Interstate 35 West, placing it near the Texas Motor Speedway, Alliance Airport, and multiple residential developments.
“The successful subscription of the [DST] further solidifies our position as a leading provider of debt-free DST offerings in the marketplace, as does the fact that over 2,600 investors have now chosen to invest with Cove Capital,” said Dwight Kay, Co-Founder and Managing Member.
Chay Lapin, managing member and founding partner of Cove Capital, said that Cove Capital principals invested their own capital into the property, creating a direct alignment of interest between sponsor and investors.
The company said another aspect of the debt-free offering is the potential for a 721 exchange rollup (a tax-deferred strategy allowing conversion of DST interests into REIT shares) as an optional exit strategy.
Small bay industrial properties are distinguished by their smaller suite footprints and ability to accommodate a large variety of diverse tenants, Cove said. With smaller, more flexible layout and suite sizes, these properties can accommodate a wide range of users – from small businesses, contractors, artisans, and even last-mile e-commerce distribution nodes.
Last month, Cove Capital fully subscribed its Texas Build-to-Rent 97 DST offering after raising approximately $27.2 million in equity from accredited 1031 exchange and direct cash investors. The 83-unit BTR residential community in San Antonio features resort-style amenities such as a pool and lazy river.
Cove Capital Investments is a private equity real estate firm that provides accredited investors with access to 1031 exchange-eligible DST properties and other real estate offerings. The firm has sponsored more than 3.6 million square feet of DST and real estate offerings in the multifamily, net lease, industrial, and office sectors.
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