Cove Capital Investments LLC, a sponsor of Delaware statutory trusts and other real estate investment offerings, announced it has fully subscribed its Cove Net Lease Distribution 56 DST, a Regulation D Rule 506(c) Delaware statutory trust offering.
The $15 million private placement launched in September 2022.
The company says Cove Capital Net Lease 56 DST was a debt-free real estate offering designed for 1031 exchange and direct cash accredited investors, broker-dealers, registered investment advisors, and registered representatives seeking to “mitigate risk potential associated with leveraged real estate investments.”
“The Cove Net Lease 56 DST debt-free offering is a 39,168 square-foot building that is 100% occupied by a Fortune 500 logistics tenant located in the strategic logistics area of Colby, Kansas,” said Dwight Kay, managing member and co-founder of Cove Capital Investments. “In addition to the attractiveness of the debt-free nature of the offering, which mitigates risks such as lender foreclosure, refinancing challenges and balloon mortgage maturity payment, investors were attracted to the high-quality nature of the asset as well. This was an essential distribution facility located in a strategic logistics location with a stable tenant and benefiting from the robust industrial and logistics real estate market forces taking place in today’s economy,” said Kay.
The Cove Net Lease Distribution 56 DST was leased by a Fortune 500 logistics tenant with a long-term net lease in place. The company says that the property is corporately backed by FedEx Ground under a new 10-year lease with extension options.
“Cove Capital’s DST Acquisition Team liked several things about this asset, including that the facility was a brand-new, build-to-suit building, anchored by an industry leading, high-quality tenant with a long-term lease in place along with two 5-year renewal options. In addition, the Colby location is strategically located to serve Kansas, Colorado, and Nebraska,” said Kay.
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible Delaware statutory trust properties, as well as other real estate investment offerings. The team consists of acquisitions, asset management, accounting, due diligence, in-house counsel, investor relations, marketing and capital markets.
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