Cove Capital Acquires Birmingham Distribution Property

Cove Capital Investments has acquired a fully leased industrial distribution property in Birmingham, Alabama, for an offering targeting approximately $11.3 million in equity. The acquisition completes the formation of Cove Birmingham Industrial DST 129.

The 11-acre site includes a 90,465-square-foot distribution facility, 30 dock doors, 51 trailer spaces and a vehicle maintenance building. Its configuration supports heavy-freight operations serving the greater Birmingham metropolitan area.

A multinational courier and logistics company occupies the entire property. Cove said the tenant has a BBB investment-grade credit rating from S&P and recently extended its net lease for an additional 10 years. The firm did not identify the tenant.

“One of the reasons we believe investors will be potentially attracted to this asset is its proximity to Birmingham and the role it plays as a regional logistics, manufacturing, and distribution hub connecting major Southeastern markets like Atlanta, Nashville, Memphis, and New Orleans,” said Chay Lapin, managing partner and co-founder.

The acquisition follows Cove’s recent purchases of a Class A corporate headquarters in Southfield, Michigan, a 170-unit apartment community in San Antonio, a grocery-anchored shopping center in Princeton, Kentucky, and an industrial distribution facility in Paducah, Kentucky. The properties support separate DST offerings targeting $11 million, $15.8 million, $5.3 million and $14.5 million, respectively.

Cove Capital Investments operates a portfolio of over 4.1 million square feet across 134 properties nationwide.

Pictured: Industrial distribution center in Birmingham, AL.