Cove Capital Closes $10M Anchorage Industrial DST
Cove Capital Investments has fully subscribed its Cove Essential Net Lease Industrial 108 DST, raising more than $9.9 million in investor equity for a distribution facility in Anchorage, Alaska.
The debt-free offering owns a 30,554-square-foot industrial facility leased to a national logistics and distribution company. Originally constructed as a purpose-built logistics facility, the property is positioned in an industrial market with historically low vacancy.
“We are grateful for the opportunity to serve a growing network of accredited investors, broker-dealers, registered representatives and RIAs,” said Dwight Kay, managing member and founding partner of Cove Capital.
Cove principals invested alongside other investors in the offering, according to Chay Lapin, managing member and founding partner.
The structure also includes the potential for a Section 721 exchange. If an opportunity becomes available, investors could contribute their DST interests to an umbrella partnership real estate investment trust, or UPREIT, in exchange for operating partnership units. Such a transaction could defer taxes while shifting investors into a more diversified portfolio, although an exchange is not guaranteed.
The closing follows several recent Cove subscriptions, including the $13 million Cove Saddle Creek Kansas 109 DST and three offerings that raised a combined $64.2 million.
Los Angeles-based Cove Capital manages more than 4.3 million square feet across 138 properties nationwide.
Pictured: Industrial distribution facility in Anchorage, Alaska.