Cove Capital Reg D Fund Buys Two Medical Facilities

Cove Capital Investments, a sponsor of 1031 exchanges and private real estate offerings, has purchased two medical office buildings on behalf of its Cove Net Lease Income Fund 18.

Cove Capital Investments, a sponsor of 1031 exchanges and private real estate offerings, has purchased two medical properties on behalf of its Cove Net Lease Income Fund 18, a debt-free Regulation D private placement offering. Financial terms were not disclosed.

Cove Net Lease Income Fund 18 invests in single-tenant industrial, medical, and retail properties throughout the country that are net leased to corporate tenants. The fund launched in September 2020 and seeks to raise $100 million from accredited investors with a minimum investment of $50,000 and a targeted preferred return of 8 percent.

The fund purchased a 7,000-square-foot property located in Winnsboro, Louisiana leased to Fresenius Medical Care (NYSE: FMS), a provider of products and services for individuals with renal diseases. Renovated in 1998, the property has 15 dialysis stations and is within close proximity to several medical facilities in the immediate area.

The second acquisition was a 7,300-square-foot build-to-suit property located in Brownsville, Texas leased to Davita Dialysis Center (NYSE: DVA), a kidney care company with approximately 2,800 outpatient clinics in 46 states. Cove noted that Davita recently extended their lease at the property for an additional 15 years.

“These particular acquisitions are great additions to the Cove Net Lease Income Fund 18 which is targeting long-term net leased, corporate tenants in multiple geographic regions and types of industries,” said Chay Lapin, managing member and co-founder of Cove Capital.

Cove Capital Investments LLC sponsors 1031 exchange DST investments and private equity real estate offerings for accredited investors. According to the company, it has sponsored or co-sponsored the syndication of more than 1.3 million square feet of DST properties and other real estate holdings in the multifamily, net lease, industrial, and office sectors. The Cove Capital portfolio consists of around 50 properties in 25 states with an acquisition value of more than $250 million.

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