Cove Capital Takes Industrial DST Offering Full Cycle, Reports 126.7% Total Return

Cove Capital Investments LLC, a sponsor of securitized 1031 exchanges and other private real estate investment offerings, has taken its Cove Debt Free Winston-Salem Distribution Delaware statutory trust offering full cycle on behalf of investors.

Cove Capital Investments LLC, a sponsor of securitized 1031 exchanges and other private real estate investment offerings, has taken its Cove Debt Free Winston-Salem Distribution Delaware statutory trust offering full cycle on behalf of investors.

According to a filing with the Securities and Exchange Commission, Cove Debt Free Winston-Salem Distribution DST launched in August 2018 to raise $2.7 million from both 1031 exchange and direct cash investors.

According to the company, the DST owned a 31,000-square-foot distribution facility located in “a dense industrial corridor surrounded by numerous distribution-related tenants” and one mile from Wake Forest University. The property was 100 percent leased to FedEx Express, which the company noted had an “investment grade” rating of BBB by Standard and Poor’s.

According to Dwight Kay, managing member and co-founder of Cove Capital, “the Winston-Salem industrial distribution facility DST, sold on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the day that the property was purchased, realized a 126.72 percent total return, or a 7.19 percent annualized return from their DST 1031 investment.”

“We are very pleased to have provided our investors with stable, uninterrupted monthly distributions throughout the entire hold period and throughout the COVID-19 pandemic…, said Chay Lapin, managing member and co-founder.

In other company news, Cove Capital recently hired Carlos Valdivia as vice president of multifamily acquisitions.

Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible Delaware statutory trust 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. The firm has reportedly sponsored and co-sponsored the syndication of more than 2.3 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.

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