Cove Capital Acquires NY Industrial Distribution Warehouse for DST Offering

Cove Capital Investments, LLC, a DST sponsor and real estate investment firm, has completed the acquisition of a newly constructed industrial distribution warehouse in Frankfort, NY.

The purchase is for the firm’s Net Lease Distribution 64 DST, a Regulation D, Rule 506(c) offering that is targeting a $13.2 million raise.

According to Dwight Kay, managing member and founding partner of Cove Capital Investments, the 61,000 square feet warehouse was purchased to contribute to its portfolio of debt-free real estate assets for 1031 exchange and direct cash investors.

“We are excited about the addition of another all-cash/debt-free DST offering to our portfolio. The distribution center is operated by a global leader in convenient foods and beverages which includes many iconic brands,” said Kay.

Consistent with many of Cove Capital’s real estate acquisitions, the Cove Net Lease Distribution 64 DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps.

“The tenant signed a 10-year net lease allowing a potential hedge against inflation,” said Cove Capital’s managing member and founding partner, Chay Lapin.

Cove Capital has sponsored and co-sponsored the syndication of more than 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.