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Cove Capital Launches DST Offering in Birmingham

Cove Capital Launches DST Offering in Birmingham. Cove Capital, alternative investments, DST, Delaware statutory trust, Alabama, 1031 exchange, multitenant

Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced that the company’s Eastwood Village Opportunity 71 DST has completed the acquisition of a debt-free multitenant retail center in Birmingham, Ala. The property was acquired for $17.6 million.

Launched in January, the Regulation D, Rule 506(c) DST offering seeks to raise nearly $22.8 million in equity from accredited investors with a minimum investment requirement of $25,000.

Cove Capital intends to implement a value-add strategy by renewing and extending leases, as well as increasing property curb appeal through various property level upgrades. It believes the property to be an opportunistic acquisition for investors due to the favorable purchase cap rate and cost per square foot.

Institutional Property Advisors, a division of Marcus & Millichap, brokered the sale of Eastwood Village to Cove Capital. A Walmart, not included in the transaction, anchors the 130,056-square-foot shopping center. It is stabilized at 96% occupancy and includes national tenants such as Ross, Five Below, Office Depot, Michael’s, and Party City. The center experiences 3.4 million annual visits, making it the No. 1 community shopping center in the market, according to a Cove Capital brochure.

“We are thrilled to announce the addition of another all-cash/debt-free DST offering to our portfolio. We would especially like to thank all the members of the Cove selling group over the years, which includes broker-dealers, registered representatives, and [registered independent advisers] for their support and trust in Cove Capital,” said Dwight Kay, managing member and founding partner of Cove Capital.

“The Cove portfolio is now over 1.9 million square feet and continues to rapidly expand,” Kay added.

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 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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