Cove Capital Launches $14 Million Florida DST Offering
Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced it has launched Florida Net Lease 72 DST, a Regulation D, Rule 506(c) offering that seeks to raise nearly $14.2 million from accredited investors with a minimum investment requirement of $25,000.
The Delaware statutory trust owns a recently renovated property in the Miami suburb of Hollywood, Fla., with a 20-year triple net lease to Guidepost Montessori. The lease is guaranteed by the Montessori school operator’s corporate parent, Higher Ground Educations.
The property was purchased by Cove Capital as part of its portfolio of debt-free, DST real estate assets for 1031 exchange and direct cash investors, according to Dwight Kay, managing member and founding partner of Cove Capital.
“We are excited to add another corporate backed net lease asset to our Cove portfolio. The Florida Net Lease 72 DST has a brand new 20-year net lease with annual rent increases and has a full corporate guarantee on the lease. Our tenant has numerous locations nationally and globally with plans to continue the expansion of their business model. We felt confident our investors would be attracted to the type of asset, location, the tenant, and the overall business strategy set forth in the private placement memorandum,” said Kay.
In addition, the property is in the state of Florida, an income tax free state considered by many to be very business friendly. “We felt confident in the tenant, location, and debt free nature of the offering,” said Chay Lapin, managing member and founding partner of Cove Capital Investments.
Like many of Cove Capital’s real estate acquisitions, the Florida Net Lease 72 DST was acquired with no leverage for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with no risk of lender foreclosure or lender cash flow sweeps.
“Our Cove acquisitions team recognized the significance of adding this property to our Cove portfolio. Not only is the property located near a main thoroughfare with a daily traffic flow of over 18,000 vehicles per day, but there is also approximately $1.5 billion in development planned, under construction, or recently completed in Hollywood, Fla. – making the location of this offering uniquely strategic to our tenant,” said Lapin.
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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