Cove Capital Investments, LLC (“Cove Capital”) added two additional essential medical buildings to its growing Cove Net Lease Income Fund 18, a Regulation D, Rule 506c offering, that is designed for accredited investors who want to potentially mitigate risk by investing in an all-cash/debt-free investment fund diversified across geographic location and tenant base.
(Los Angeles, CA) Cove Capital Investments, LLC, announced it has completed the purchase of two essential medical facilities totaling more than 14,000 square feet for the firm’s Net Lease Income Fund 18. The fund is focused on acquiring, owning, and actively maintaining a portfolio of single-tenant, long-term net lease, income-producing industrial, medical, and retail properties throughout the United States that are leased with corporate tenants and provide the potential for monthly investor distributions.
The first acquisition was for a 7,000 square foot essential Fresenius Medical Care (NYSE: FMS) building in Winnsboro, LA. Fresenius is the world’s largest provider of products and services for individuals with renal diseases, employs over 120,000 employees, and treats more than 345,000 patients across more than 50 countries. The Winnsboro location is strategically located just 40 miles from Monroe, LA, 90 miles from Alexandria, LA, and 107 mills from Jackson, MS.
In addition, the Property was renovated in 1998 to accommodate the highly trafficked medical clinic that has 15 dialysis stations, and benefits from the proximity of several medical facilities in the immediate area, including Winnsboro Medical Clinic, Green Clinic Health System, Plantation-Manor rehabilitation Center, Legacy Nursing Facility, and the Franklin Medical Center. With more than 8,700 cars passing the facility each day, the location has been and continues to be synonymous with providing life sustaining health services to the Winnsboro community for more than two decades.
The second acquisition was for a 7,300 square foot Davita Dialysis Center (NYSE: DVA) located in Brownsville, TX. DaVita, Inc. is one of the leading kidney care companies in the world with over 2,753 outpatient clinics in 46 states. It is ranked number 200 on the Fortune 500 list, generated $11.54 billion in revenue in 2020, and has a BB rating by Standard & Poors. Davita specifically chose this location to complete a high-quality build-to-suit building design that would anchor their presence in the Brownsville and the surrounding markets. The Brownsville Davita Dialysis Center has been so successful at this location that they recently extended their lease for another 15 years*.
The Property is also strategically located along Central Boulevard and the intersection of US Highway 83 and Reuben Torres Blvd, a junction that sees 161,000 cars per day. In addition, there are nearly 172,000 people in the five-mile radius earning an average household income of over $53,000.
Both properties were purchased on behalf of Cove Net Lease Income Fund 18, a regulation D, Rule 506c private placement all-cash/debt free fund offering that is focused on acquiring long-term net leased corporate buildings. The fund is planning to raise $100 million in equity from accredited investors and has a minimum investment of $50,000. The fund is focused on creating the potential for monthly distributions with a targeted preferred return of eight percent. *
“These particular acquisitions are great additions to the Cove Net Lease Income Fund 18 which is targeting long-term net leased, corporate tenants in multiple geographic regions and types of industries.” said Chay Lapin, managing member/co-founder of Cove Capital.
For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at
(877) 899-1315 and via email at info@covecapitalinvestments.com.
*Diversification does not guarantee profits or protect against losses.
*Past performance is not a guarantee of future results.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. This correspondence contains information that has been obtained from sources believed to be reliable. However, Cove Capital Investments, LLC does not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Limited Liability Company owned (LLC) properties, LLC interests, Delaware Statutory Trust (DST) properties, and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and net lease properties, short term leases associated with net lease properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances. Nothing contained in this material, including in this disclosure or in any other disclosure in this message, constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.
