Cove Capital Acquires Maryland Walgreens for Opportunistic Fund
Cove Capital Investments LLC, a private equity real estate firm and Delaware statutory trust sponsor, announced it completed the purchase of a Walgreens Pharmacy in Hagerstown, Maryland.
The company did not disclose the purchase price.
Cove says the purchase is part of the firm’s Opportunistic Fund 75, a fund that is made available to accredited investors exclusively under Regulation D, Rule 506(c).
According to Cove, the asset was purchased with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps. The fund seeks to raise $100 million in equity from accredited investors with a minimum investment requirement of $25,000.
“Walgreens Pharmacy is the largest global pharmaceutical wholesale and distribution network in the world and has more than 400 distribution centers serving more than 240,000 pharmacies, doctors, health centers and hospitals each year across the globe,” said Dwight Kay, managing member and co-founder of Cove Capital and Investments. “This newly acquired asset is a good fit for the Cove Opportunistic Fund 75 which seeks to provide investors a diversified real estate portfolio that is non-correlated to the stock market, and designed to provide our growing number of investors, advisors, broker-dealers and registered investment advisor’s the potential for regular income, capital appreciation and tax efficiencies without the added risk of debt.”
Cove says the 2,502-square-foot-building is an example of Walgreens newly introduced “small format” concepts that are “specifically designed to place a sharper focus on health and wellness efforts by creating a high-touch experience where pharmacists can interact more closely with customers.”
“We are proud of our Cove Acquisitions Team and are excited to include this Walgreens Pharmacy into our Cove Opportunistic Fund 75,” said Cove Capital’s managing member and co-founder, Chay Lapin. “First, because it is an essential services business, there are certain elements of the asset that make it potentially more resistant to pandemics and recessions than non-essential businesses. Furthermore, this net lease asset is a newly constructed building with drive-thru capabilities and located in a dense retail corridor. Finally, this Walgreens is in close proximity to a strong residential base that averages $100,000 a year in income and directly across the street from the Volvo Group’s Hagerstown heavy diesel engine manufacturing facility.”
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. Cove 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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