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Cove Capital Takes DST Offering Full Cycle with Data Center Property Sale

Cove Capital Investments has sold Tacoma Data Center on behalf of one of its Delaware statutory trust offerings.

Cove Capital Investments, a sponsor of 1031 exchange and private real estate offerings, has sold Tacoma Data Center, a three-story, 18,700-square-foot property located in Tacoma, Washington, for $9.8 million on behalf of one of its Delaware statutory trust offerings.

The company launched Cove Debt Free Tacoma Data Center DST, a Regulation D private placement offering, in December 2018 and raised $8.4 million from accredited investors to purchase the property.

Co-founder Chay Lapin said that Tacoma Data Center houses the West Coast data center operations of a Fortune 500 dialysis treatment provider. According to Cove Capital’s website, the property is fully leased to DaVita (NYSE: DVA) for approximately 14 years with two five-year extension options.

“We were able to provide our investors with a full-cycle liquidity event and profitable sale all while maintaining the lower-risk profile of an all-cash/debt-free DST investment with no long-term mortgage encumbering the asset,” said Dwight Kay, co-founder of Cove Capital.

Cove Capital noted that DST investors received uninterrupted monthly distributions throughout the hold period and during the COVID-19 pandemic, and that more than 75 percent of the investors reinvested in other DST offerings sponsored by the company.

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.

For more Cove Capital Investments news, please visit their directory page.