Cove Capital Investments Fully Subscribes Its Debt-Free Cove Net Lease Distribution 56 Delaware Statutory Trust Offering in Colby, KS
February 14, 2023 | Cove Capital Investments, LLC.
Cove Capital announces it has successfully raised $15,050,260 to fully subscribe the debt-free, essential distribution DST offering on behalf of accredited investors, broker-dealers, RIA’s, and registered representatives.
Cove Capital Investments, LLC, a private equity real estate firm and DST sponsor company specializing in debt-free investment offerings for 1031 exchange and direct cash accredited investors, announced it has fully subscribed its Cove Net Lease Distribution 56 DST, a regulation D Rule 506c Delaware Statutory Trust offering. The total amount of equity raised for the property was $15,050,260.
According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, the Cove Capital Net Lease 56 DST was a high-quality debt-free real estate offering designed for 1031 exchange and direct cash accredited investors, broker-dealers, RIA’s, and registered representatives seeking to mitigate risk potential associated with leveraged real estate investments.
“The Cove Net Lease 56 DST debt-free offering is a 39,168 square-foot building that is 100% occupied by a Fortune 500 logistics tenant located in the strategic logistics area of Colby, KS. In addition to the attractiveness of the debt-free nature of the offering, which mitigates risks such as lender foreclosure, refinancing challenges, and balloon mortgage maturity payment, investors were attracted to the high-quality nature of the asset as well. This was an essential distribution facility located in a strategic logistics location with a stable tenant, and benefiting from the robust industrial/logistics real estate market forces taking place in today’s economy,” said Kay.
Kay explained that the Cove Net Lease Distribution 56 DST was leased by a Fortune 500 logistics tenant with a long-term net lease in place. In addition, as an essential business, the tenant remained open and continued paying rent throughout the entire COVID-19 Pandemic.
“Cove Capital’s DST Acquisition Team liked several things about this asset, including that the facility was a brand-new, build-to-suit building, anchored by an industry leading, high-quality tenant with a long-term lease in place along with two 5-year renewal options. In addition, the Colby, KS location is strategically located to serve Kansas, Colorado, and Nebraska,” said Kay.
About Cove Capital Investments
Cove Capital Investments is a private equity real estate firm and DST sponsor company providing accredited investors access to 1031 exchange eligible Delaware Statutory Trust properties as well as other real estate investment offerings. The Cove Capital team consists of Acquisitions, Asset Management, Accounting, Due Diligence, In-House Counsel, Investor Relations, Marketing and Capital Markets. Cove Capital maintains a robust current inventory of DST and private equity real estate offerings potentially available to investors. Cove Capital Investments has sponsored over 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.
For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at (877) 899-1315 and via email at info@covecapitalinvestments.com.
* Past performance is not a guarantee of future results. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. This correspondence contains information that has been obtained from sources believed to be reliable. However, Cove Capital Investments, LLC does not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Limited Liability Company owned (LLC) properties, LLC interests, Delaware Statutory Trust (DST) properties, and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and net lease properties, short term leases associated with net lease properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances. Nothing contained in this material, including in this disclosure or in any other disclosure in this message, constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.
