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Cove Capital Fully Subscribes Richlands, Va., Cove Net Lease Distribution 66 DST Offering

Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced that its Regulation D Rule 506(c) Cove Net Lease Distribution 66 DST is fully subscribed. The total amount of equity raised for the offering was just over $3.8 million.

According to Dwight Kay, managing member and founding partner of Cove, the 1031 exchange DST offering was made available to accredited 1031 exchange and direct cash investors as an all-cash/debt-free DST offering designed to potentially mitigate risk of lender foreclosure or lender cash flow sweeps.

According to past reporting by The DI Wire, the property serves as a distribution warehouse for snack food company Frito-Lay Inc., an affiliate of PepsiCo, and features a long-term 10-year net lease. The industrial facility is located adjacent to Highway 460 in Richlands, Va., a centralized location for transportation to Charlotte, N.C.; Knoxville, Tenn.; Lexington, Ky.; and Charleston, W.Va., which are all within separate four-hour commutes.

“We would like to thank each of our clients who invested in this DST and all of the members of the Cove selling group including broker-dealers, registered representatives, and [registered investment advisers],” said Kay.

“Like many of Cove Capital’s real estate acquisitions, the Cove Net Lease Distribution 66 DST was acquired 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. This offering consists of a tenant who is potentially both recession and pandemic resistant and potentially achieves the major objectives in the Delaware statutory trust strategy,” said Chay Lapin, managing member and co-founder of Cove.

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

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