Cove Capital Buys FedEx Logistics Facility Near Idaho Falls for DST Offering

Cove Capital Investments, LLC, a sponsor of securitized 1031 exchanges and other private real estate investment offerings, has purchased a net-lease industrial logistics property located in Rigby, Idaho.

Cove Capital Investments, LLC, a sponsor of securitized 1031 exchanges and other private real estate investment offerings, has purchased a net-lease industrial logistics property located in Rigby, Idaho, approximately 15 miles from downtown Idaho Falls, on behalf of its Cove Net Lease Distribution 50 Delaware statutory trust offering.

Cove Houston Corporate 50 DST is an all-cash 506(c) private placement offering that launched in March 2022 to raise $7.8 million from accredited investors, according to public filings.

The 47,600-square-foot distribution center sits on 10.6 acres and is 100 percent leased by a “Fortune 500 logistics tenant,” which has occupied the building since 2013 and “has shown continuing commitment to the location,” the company said.

According to the Cove Capital website, the property is corporately backed by FedEx Ground until October 31, 2030, after extending the lease for 10 years during the COVID-19 pandemic. Recent improvements to the property include upgrades to the parking lot and the addition of new security fencing.

“The acquisition of this essential industrial facility adds to our growing inventory of high-quality logistics assets across the country. With the booming industrial/logistics real estate sector, and the high demand for logistical space across the country, we feel confident in the future for this asset due to its location, the stability of the tenant, and a supply constrained industrial market,” said Chay Lapin, managing member and co-founder of Cove Capital.

In addition, Lapin noted that the property was renovated in 2020 “to accommodate the growing logistics activity the facility continues to experience, and its location in the highly trafficked Idaho Falls region.”

The company said that the area is considered a strategic logistics location via Interstate 15 that provides access to Salt Lake City and Boise. It is also a one-day drive to the Pacific Northwest, Denver, and Las Vegas.

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.

The firm has reportedly sponsored and co-sponsored the syndication of more than 2.3 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.

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