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Cove Capital Buys Business Park in Texas as Part of DST Offering

Cove Capital Buys Business Park in Texas as Part of DST Offering. Cove Capital, alternative investments, DST, Delaware statutory trust, Texas, 1031 exchange, multitenant

Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced that the company’s Business Park Opportunity 76 DST has completed the acquisition of a debt-free, 39,000-square-foot, multi-tenant, industrial and mixed-use property in Pearland, Texas.

Launched in January, the Regulation D, Rule 506(c) DST offering seeks to raise just under $8.6 million in equity from accredited investors with a minimum investment requirement of $25,000.

The property 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.

“The newly renovated property is occupied by a synergistic mix of e-commerce resistant tenants, made up of three separate buildings, featuring a 28,310-square-foot flex building, 7,287-square-foot restaurant, and 4,000-square-foot storage warehouse,” said Kay.

“We are excited about the addition of another all-cash/debt-free DST offering to our portfolio. Like the majority of Cove Capital’s real estate acquisitions, the Pearland Business Park Opportunity 76 DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with a potential hedge against inflationary increases to expenses due to 100% triple-net leases as well as annual rental escalations,” said Kay.

“Our Cove acquisitions team recognized the significance of adding this property to our Cove portfolio. Positioned strategically along Broadway Street with a daily traffic flow of over 26,000 vehicles, the city of Pearland was ranked as the second-fastest growing city in Texas and the third fastest growing economy in the [United States],” said Chay Lapin, Cove Capital’s managing member and founding partner.

“Additionally, the city of Pearland is situated just 8 miles south of the Texas Medical Center, the world’s largest medical complex with 50 million developed square feet and $3 billion in construction projects underway,” Lapin added.

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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