Cove Capital Acquires Kentucky Retail Center for New DST Offering
Cove Capital Investments has acquired a fully leased, grocery-anchored retail shopping center in Princeton, Kentucky, anchoring its new Cove Princeton KY Opportunity 117 Delaware Statutory Trust offering — a Regulation D, Rule 506c vehicle targeting a $5,311,475 equity raise for accredited 1031 exchange investors.
The approximately 72,013-square-foot retail center is anchored by Marshalls, Tractor Supply and Ruler Foods, a subsidiary of The Kroger Co., providing a mix of national-credit necessity-based tenancy designed to support long-term occupancy and consistent foot traffic. The center is fully leased.
Consistent with Cove Capital’s investment philosophy, the acquisition was completed on an all-cash, debt-free basis — a structure the firm said eliminates lender foreclosure risk associated with traditional leveraged DST investments and reinforces its commitment to risk-mitigating ownership strategies.
“This acquisition represents the type of necessity-based retail investment we continue to seek on behalf of our investors,” Cove Capital Investments said. “The combination of national-credit tenancy, grocery-anchored traffic, recent lease extensions, and a debt-free ownership structure makes this a compelling addition to our portfolio on behalf of our 1031 exchange DST investors.”
The deal follows Cove Capital’s recently announced acquisition of a mission-critical distribution facility in Paducah, Kentucky, which anchors its Cove Essential Net Lease Industrial 116 DST offering targeting an equity raise of just over $14.5 million, marking the firm’s second Kentucky acquisition in recent weeks.
The Kentucky acquisition follows Cove Capital’s recent purchase of Saddle Creek Crossing in Wichita, Kansas, which anchors the firm’s Cove Kansas Retail DST 109 offering targeting a $12.95 million equity raise.
Los Angeles-based Cove Capital Investments operates a portfolio of over 3.7 million square feet of real estate across 129 properties nationwide.
Pictured: Retail center in Princeton, Kentucky