(Los Angeles, CA) Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company that specializes in providing accredited investors access to debt-free Delaware Statutory Trust real estate offerings for 1031 exchange and direct cash investments, announced it fully subscribed seven regulation D Rule 506c Delaware Statutory Trust offerings across multiple geographic regions, and among a variety of asset classes including multifamily, net lease, industrial, and retail. The total amount of equity raised for these DST offerings was $106,948,368.00, reinforcing the fact that the firm’s approach toward providing accredited 1031 exchange investors access to debt free DSTs as a purposeful strategy of mitigating risk for its investors is resonating throughout the real estate investment community.
“In light of the fact that past performance does not guarantee future results, and that all real estate investments (including DSTs) may go down in value as well as that distributions and appreciation are never guaranteed and could be lower than anticipated, Cove Capital Investments believes that lowering our investors’ risk potential by staying debt free is a necessary and prudent strategy for many clients. Clearly our investors and the many Broker Dealers, RIAs and Registered Representatives that are part of our selling group, feel the same as well,” said Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments.
These fully subscribed offerings include:
Cove Debt-Free Essential Net Lease 58 DST
The Cove Debt-Free Essential Net Lease 58 is a diversified portfolio which includes three properties covering multiple asset classes in multiple geographic locations. It was offered as a Regulation D Rule 506c DST investment. The total amount of equity raised for the offering was $11,074,616.
The Offering showcases a strong essential business tenant lineup, all with long-term net leases.
“We wanted to form a highly diversified portfolio of asset classes, tenant companies and geographic regions when forming the Cove Essential Net Lease 58 DST. The portfolio includes strong tenants that are potentially both recession and pandemic resistant and that potentially achieve the major objectives in the Delaware Statutory Trust strategy,” said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments
Cove Debt-Free Dallas Multifamily 59 DST
The Cove Debt-Free Dallas Multifamily 59 DST is a 130,128 square-foot community with 159 units located 20 minutes from downtown Dallas in Lancaster, TX. The asset is a D Rule 506c D Rule 506c DST offering. The total equity raise for this asset was $32,493,647.
The Cove Dallas Multifamily 59 DST is a value-add multifamily offering with a business plan to potentially drive value at the property through various initiatives, explained Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments.
“We are seeing solid job growth in Lancaster as 6 million square feet of new warehouse and manufacturing space was added over the last 5 years with another 7 million square feet planned for the next 5 years.”
Cove Debt-Free Parkdale Commons Multi-Tenant Retail Opportunity 62 DST
The 191,559 square foot Parkdale Commons retail center is located in Waco, TX and anchored by a large national retailer. It was offered as a Regulation D Rule 506c DST investment. The total equity raise for this asset was $21,593,348.
The Cove Parkdale Commons Multi-Tenant Retail Opportunity 62 is a value-add investment opportunity that includes plans for repositioning the asset through leasing and property improvements.
“Cove Capital’s repositioning of this multi-tenant retail center in Waco, Texas is a good example of the DST sponsor company’s investment vision that often involves contrarian investment strategies. Through the acquisition of the asset class without leverage and at a price below replacement cost, the Cove Capital team swiftly began a comprehensive value-add strategy, showcasing their commitment to potentially generating value for investors,” said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.
Cove Debt-Free Net Lease 63 DST in Lewisville, TX.
This particular net-lease property is located in Lewisville, TX, a dynamic suburban community in the thriving Dallas-Fort Worth Metroplex. The Cove Debt-Free Net Lease 63 DST was offered as a Regulation D Rule 506c DST investment. The total equity raise for this asset was $10,444,211.
Kay explained that the Cove Texas Net Lease 63 DST is a Corporate Net Lease investment with a brand new 20-year lease with annual rent increases and has a full corporate guarantee on the lease.
“Our tenant has numerous locations nationally and globally with plans to continue the expansion of their business model. This is another example of a debt free DST offering sponsored by Cove Capital that was very well received by the 1031 exchange investment community,” said Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments.
Cove Debt-Free Net Lease Distribution 66 in Richlands, VA
The Cove Net Lease Distribution 66 DST is a newly constructed industrial Distribution Center in Richlands, VA and is strategically located adjacent to Highway 460, which runs through Richlands’ central location allowing transportation to Charlotte, NC, Knoxville, TN, Lexington, KY and Charleston, WV, all major transportation corridors. It was offered as a Regulation D Rule 506c DST investment. The total equity raise for this asset was $3,819,645.
In addition to the long-term lease and favorable location, this building is brand new with high quality construction. The asset has a corporately backed net lease with a COVID 19 pandemic resistant essential business.
“In addition, the newly constructed distribution warehouse maintains the ability to further expand the facility with additional square footage in the future, making this property an ideal target for the DST offering” said Cove Capital’s Managing Member and Founding Partner, Chay Lapin.
Cove Debt-Free Texas Net Lease 67 DST
The Cove Debt-Free Texas Net Lease 67 DST is a net lease DST portfolio of two buildings located in the Dallas-Fort Worth, TX MSA. It was offered as a Regulation D Rule 506c DST investment. This 100% debt-free DST offering was offered to accredited investors as a net-lease DST offering. The total equity raise for this DST investment was $21,450,625.
Cove Capital investments acquired its Cove Debt-Free Texas Net Lease 67 DST as a net lease asset designed to provide meaningful potential distributions through long-term corporate leases with corporate tenants.
“Our tenant has over 95 locations nationally and globally. Both properties are strategically located in high-income trade areas with average household incomes of more than $133,000 within a 1-mile radius of each subject property. We felt confident our investors would be attracted to these unique assets and the overall business strategy set forth in the Private Placement Memorandum,” said Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments.
Cove Debt-Free Pharmacy Net Lease 70 DST
The Cove Capital Pharmacy Net Lease 70 DST is a national pharmacy net lease asset with a drive-thru operated under a long term net lease. It was offered as a Regulation D Rule 506c DST investment. The total amount of equity raised for this offering was $6,146,792.
The property is located along a main retail thoroughfare and is neighbors to multiple national tenants in the surrounding area as well as it boasts exposure to over 40,251 vehicles per day. This again is another example of Cove Capital fully subscribing a Delaware Statutory Trust offering. Our current Cove Capital portfolio is over 2.1 million square feet and we are honored to have been trusted by over 1,600 high net worth investors nationwide to steward their 1031 exchange and equity capital,” said Chay Lapin, Managing Member and Founding Partner, Chay Lapin.
