Cove Capital Acquires Frito-Lay/PepsiCo Distribution Center for DST Offering
Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced it has completed the purchase of a newly constructed industrial net lease asset in Luling, La. The purchase is for the firm’s Net Lease Distribution 69 DST, a Regulation D, Rule 506(c) offering that is targeting to raise more than $12.4 million in equity from accredited investors with a minimum investment requirement of $25,000.
The 27,000-square-foot facility was purchased by Cove Capital to contribute to its growing portfolio of debt-free real estate assets for 1031 exchange and direct cash investors, according to Dwight Kay, managing member and founding partner of Cove Capital Investments.
“We are thrilled to announce the addition of another all-cash/debt-free DST offering to our portfolio. This product distribution and industrial logistics center is operated by Frito-Lay/PepsiCo, a global leader in convenient foods/beverages boasting a roster of many iconic brands,” said Kay. “What makes this property particularly appealing for our DST offering is that it is a newly constructed distribution center, equipped with the potential for future expansion, potentially increasing its long-term value.”
The property was purchased debt-free by Cove Capital for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with no risk of lender foreclosure or lender cash flow sweeps.
“…The facility’s strategic location in Luling places [it near] the Louis Armstrong New Orleans International Airport, with easy access to the New Orleans and Baton Rouge markets via interstate connections. Moreover, this logistics hub is situated within the thriving Greater New Orleans market, which is currently hosting industrial projects totaling $17 billion and ranked ninth in terms of gross domestic product growth in America for 2021-2022,” explained Chay Lapin, managing member and founding partner of Cove Capital Investments.
Lapin emphasized that this offering features a high-quality tenant in Frito-Lay/PepsiCo, which is presumably well-positioned to potentially weather economic downturns, including recessions and pandemics, aligning perfectly with the core objectives of Cove Capital’s DST strategy.
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible DST 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. Cove Capital has sponsored over 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors.
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