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Cove Capital Acquires Georgia Asset DST, Seeks $16.5 Million Capital Raise

By Mari Nicholson

Cove Capital Acquires Georgia Asset DST Seeks 165 Million Capital Raise

Delaware statutory trust sponsor company Cove Capital Investments LLC has completed the purchase of an industrial asset in Athens, Ga. The purchase comprises the firm’s General Time Industrial Park Opportunity 84 DST, a Regulation D, Rule 506(c) offering that is targeted to raise just over $16.5 million. Cove did not provide the purchase price.

According to Dwight Kay, managing member and founding partner of Cove Capital Investments, the property was purchased by Cove Capital as part of its debt-free, DST real estate portfolio for 1031 exchange and direct cash investors.

Purchased below replacement cost, according to the company, the property is situated within the larger 35-acre General Time mixed-use development, which is set to become a new social and commercial center for residents. The asset spans approximately 113,000 square feet and is home to Terrapin Beer Company (a subsidiary of Molson Coors) and Wayfair LLC.

“The asset, built in 1990 and redeveloped in 2018 to 2021 with high-quality construction, features a completely redeveloped site plan with improved ingress/egress, and separately parceled lots with focused integration of mixed uses,” said Kay. “This is an opportunity for accredited investors to invest in – via a 1031 exchange or a direct cash investment – an infill industrial property located next to a planned mixed-use development in the expanding [Athens] market.”

“The former General Time Corporation/Westclox factory plus surrounding land is being repurposed to include restaurants, retail shops, Class-A multifamily units, office space, entertainment venues, and hospitality options to create a vibrant and unique live-work-play community,” added Chay Lapin, managing member and founding partner of Cove Capital Investments.

Like many of Cove Capital’s real estate acquisitions – such as the subscription of the Rogers Business Park Opportunity 73 DST development in Texas and the purchase of The Peanut Factory Lofts through Cove Capital San Antonio Multifamily 74 DST – General Time Industrial Park Opportunity 84 DST was acquired with 0% leverage 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.

“This investment highlights our dedication to acquiring quality assets in strategic locations that provide investment potential for our investors. We look forward to our ownership period and are honored to add this location to our portfolio of over 2.5 million square feet,” said Kay.

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 2.5 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 33 states nationwide.

For more Cove Capital news, please visit their directory page.