Cove Capital Fully Subscribes Texas Business Park DST Offering for $23.1 Million
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Delaware statutory trust sponsor company Cove Capital Investments LLC announced that its Rogers Business Park Opportunity 73 DST – a Regulation D, Rule 506(c) DST offering – is fully subscribed. The total amount of equity raised for the offering, which launched in April of this year, was just over $23.1 million.
“We extend our sincere thanks to all our clients who invested in this DST, as well as to the many members of the Cove selling group, including broker-dealers, registered representatives, and [registered investment advisers]. We are pleased to announce that the Cove Capital Investments portfolio now spans over 2.4 million square feet of properties in 33 states,” said Dwight Kay, managing member and founding partner of Cove Capital.
Located in Fulshear, Texas, the property location is considered ground zero for Fulshear’s historic growth and development, according to Cove Capital. Fulshear is noted as the fastest-growing city in Texas and home to several top-selling master-planned communities, which further enhanced the appeal of the Rogers’ investment opportunity.
“Fulshear is a thriving community with a dynamic business environment, making it an ideal location for our latest addition to the Cove portfolio – a flex industrial mixed-use property. The Rogers Business Park Opportunity 73 DST represents a prime investment, purchased below replacement cost and currently 95.22% occupied, with recent lease extensions and renewals reflecting strong tenant commitment. …” said Chay Lapin, managing member and founding partner of Cove Capital.
“Cove Capital Investments recognized early on that there was a void in the marketplace for high-quality, debt-free 1031 exchange DST real estate investment options like the Rogers Business Park Opportunity 73 DST, which provides greater flexibility for our investors,” said Kay.
Cove Capital specializes in providing accredited investors access to debt-free investment options for their 1031 exchange and direct cash investments. The offering, like many of Cove Capital’s real estate acquisitions – e.g., the purchase of The Peanut Factory Lofts through Cove Capital San Antonio Multifamily 74 DST; the Dallas-area Tractor Supply store acquisition on behalf of Cove Tractor Net Lease 79 DST – was designed to eliminate the risk of lender debt covenants, lender cash flow sweeps, and lender foreclosure.
“We are free to pursue whichever exit strategy provides the best potential opportunity to our investors without being constricted by lender prepayment penalties and vast defeasance costs like many other DST offerings are that have debt on them. …” concluded Kay.
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 2.5 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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