Cove Capital Investments LLC, a private equity real estate firm and DST sponsor company announced it has completed the acquisition of a net lease national pharmacy in Encinitas, California.
Cove says the asset is an 11,370-square-foot, free-standing building located in a commercial thoroughfare and retail trade area in one of California’s beach communities.
The net lease asset was acquired as part of Cove’s Net Lease 65 DST, a Reg. D, Rule 506(c) Delaware statutory trust offering. The fund seeks to raise $10 million from accredited investors with a minimum investment of $50,000.
“While each one of our offerings provides investors unique investment advantages, we feel the acquisition of the of this leading pharmacy brand asset in downtown Encinitas will be a very attractive offering to Cove Capital investors,” Chay Lapin, managing member and co-founder of Cove Capital Investment, said. “First, the property is located in one of the most beautiful and affluent coastal communities in Southern California. Second, the asset is secured by a new long-term net lease that is corporately guaranteed by WBA Inc., a publicly traded firm that, according to CNBC, generated $33 billion in revenue in 2021. In addition, this Encinitas pharmacy location is one of the top performing stores among the chain’s 8,802 locations with reported sales of $2.5 million.”
The company says the Cove Pharmacy Net Lease 65 is being offered to accredited investors as a 100% unleveraged asset available for 1031 exchange and direct cash investments.
“The vast majority of investment real estate offerings are leveraged, especially in the DST space,” Dwight Kay, managing member and co-founder of Cove Capital Investments, said. “Like Cove Pharmacy Net Lease 65, Cove Capital has purchased the majority of its DST assets specifically for debt-free offerings.”
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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