Cove Capital Investments, LLC (“Cove Capital”) announced it has completed the formation of its Cove Essential Net Lease Industrial 87 DST offering that highlights a strategically located distribution facility located in Arizona and 100% occupied by a best-in class operator.
LOS ANGELES, May 20, 2025 /PRNewswire/ — Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company that specializes in providing accredited investors access to debt-free options for their 1031 exchange and direct cash investments, announced it has recently completed the acquisition of a strategically located distribution center connecting the major markets of Tucson, Phoenix, and El Paso. The acquisition will establish the Essential Net Lease Industrial 87 DST, a Regulation D, Rule 506(c) offering that aims to raise $5,883,299 in equity.
According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, the Cove Essential Net Lease Industrial 87 DST offering is unique in that it provides investors an opportunity to invest in a significant industrial distribution center located just feet from U.S. Highway 90, the primary thoroughfare that connects this part of Arizona to Interstate 10.
“This large essential industrial asset is interesting for a number of reasons. First, the location is ideal for our tenant who is a leading player in the global logistics industry. Second, the tenant recently showed commitment to continued operations at this location for the foreseeable future. Third, this Essential Net Lease Industrial 87 DST offering is a fully debt-free investment that was created with the purposeful investment strategy of mitigating common risks associated with real estate debt, such as mortgage foreclosure, cash flow sweep clauses, and go-dark provisions,” explained Kay.
In addition, Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments also emphasized that this offering has the potential for a 721 Exchange rollup as a potential exit strategy.
“Another important aspect of the Cove Essential Net Lease Industrial 87 is that it provides investors the possibility of using the 721 Exchange rollup as a fully optional exit strategy. Instead of signing up today in a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not – at their discretion. This means that at the time of any potential future 721 UPREIT transaction, our investors will be able to analyze the final destination REIT by examining key areas such as: REIT debt levels, dividend coverage ratios, the use of floating rate debt, does the REIT offer 721 investors a Tax Protection Agreement (TPA), if so how long is it for? And other key components investors must consider prior to participating in a 721 exchange”, said Lapin.
About Cove Capital Investments
Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.5 million square feet of real estate in 33 states nationwide. Over 2,000 investors have trusted Cove Capital with their 1031 exchange and investment dollars, many of them being repeat investors in multiple DST offerings over the years. Our offerings are attractive to those investors seeking to lower risk potential as the majority of Cove Capital’s DST offerings are debt free (no mortgage – no lender foreclosure risk). To sign up for a list of the current Cove Capital offerings available for 1031 exchange and direct investments please visit www.covecapitalinvestments.com.
For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at (877) 899-1315 and via email at info@covecapitalinvestments.com.
*Past performance is no guarantee of future results.
*Diversification does not guarantee profits or protect against losses.
*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 material 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, 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 multi-family 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. Securities offered through FNEX Capital, member FINRA, SIPC.
SOURCE Cove Capital Investments
