One of Cove Capital’s DST offerings located in Greenville, SC has gone full-cycle delivering an annualized return of 12.60%* after providing uninterrupted monthly distributions throughout the COVID-19 Pandemic
(Torrance, CA January 4, 2021) Cove Capital Investments, LLC, a nationally recognized DST real estate sponsor company, announced it had successfully brought another one of its debt-free DST investments full cycle to deliver successful returns on behalf of investors.
According to Dwight Kay, managing member and co-founder of Cove Capital Investments, the DST property was sold on behalf of a large group of DST accredited investors. “Full Cycle” is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.The recent full-cycle DST offerings sale generated a 12.60% Annualized Return*.
“We are very pleased to have provided our investors with a full cycle liquidity event, uninterrupted monthly distributions throughout the entire COVID-19 pandemic, return of their entire equity amount invested as well as appreciation on that equity upon sale. While past performance does not guarantee or indicate the likelihood of future results and all real estate investments could result in a full loss of principal, this DST Offering is a good example of how Cove Capital Investments does everything it can to provide our clients with investments that have a lower risk profile with assets that are potentially resilient to pandemics and recessions, and often offered as debt free DST offerings without long-term mortgages,” said Kay.
Chay Lapin, Cove Capital Investments managing member and co-founder, explained that the Greenville, SC DST property performed as per the business plan in the Private Placement Memorandum (PPM) which sought to provide investors with monthly distributions, a full cycle liquidity event and a profitable sale all while maintaining the lower-risk profile of an all-cash/debt-free DST investment**.
“Our investors were attracted to this Delaware Statutory Trust offering because it provided them the potential for a risk adjusted durable income stream, a high-quality tenant, risk mitigation via a debt-free offering with no balloon mortgage, and multiple exit strategies,” said Lapin.
In the case of the Cove Greenville 17 DST, the asset was 100 percent occupied and secured with a long-term, absolute NNN lease that was corporately backed.
“Investors liked that the asset had a long-term, corporately-backed lease, annual rent increases, and a tenant with an established track record. It is a good example of a DST real estate offering that was managed in accordance with our business plan and our investors were very satisfied with the results**.Of course, going forward we hope that all of our offerings perform as well as or even better than this particular DST however that is never guaranteed, and investors should understand that all real estate and DST investments contain multiple risk factors.We always encourage all Cove Capital investors to read each offering’s PPM paying careful attention to the risk factors prior to considering an investment.” said Lapin.
Cove Capital continues to purchase more net lease, industrial and multifamily properties for its DST investment program as well as its private real estate investment funds.
To view current Cove Capital 1031 exchange DST replacement properties and/or direct cash investment opportunities, please visit www.covecapitalinvestments.com or call 877-899-1315 for more information.
* Annualized return is defined as total return including profit on sale and monthly distributions earned on an annualized basis and is calculated as if an investor closed on their DST investment the same day that the DST closed on the property.
** Past performance does not guarantee or indicate the likelihood of future results. No representation is made that any DST investment will or is likely to achieve profits or losses similar to those achieved in the past or that losses will not be incurred on future offerings.
Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.
There are material risks associated with investing in real estate, 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 multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. All offerings discussed are Regulation D, Rule 506c offerings. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, 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. Securities offered through FNEX Capital, member FINRA, SIPC.