Cove Capital Adds Alabama Asset to Growing Industrial DST Portfolio

Cove Capital Investments has launched the Cove Essential Net Lease Industrial 114 DST, a Regulation D, Rule 506(c) offering targeting just over $12.1 million in equity.  

The offering is backed by a 23,018-square-foot build-to-suit distribution facility in Mobile, Alabama, which serves as a Product Exchange Center for a division of a multinational food and beverage company. The asset is secured by a newly executed 10-year net lease. 

According to Dwight Kay, managing member and co-founder of Cove Capital Investments, the acquisition underscores the firm’s continued emphasis on a debt-free strategy.  

“By removing debt from the equation, we inherently shield investors from lender-driven threats like foreclosure, cash flow sweeps, and ‘go-dark’ provisions that can destabilize a property,” Kay said. Cove Capital principals also co-invest their own capital into each offering, aligning interests with investors. 

The Cove Essential Net Lease Industrial 114 DST includes a fully optional 721 exchange exit feature, giving investors flexibility around future liquidity events. “Our optional 721 path means that when a potential roll-up arises, our investors have the right to conduct thorough due diligence on the destination REIT and then decide if it’s the right move for them,” said Chay Lapin, managing member and co-founder of Cove Capital Investments. 

The Alabama asset extends a busy 2026 deal calendar for Cove, following the acquisition of a newly constructed industrial distribution center in New Mexico for its Cove Essential Net Lease Industrial 106 DST and the launch of the Essential Net Lease Industrial 108 DST.  

Cove Capital currently operates a portfolio of more than 3.6 million square feet across 127 assets nationwide. 

Pictured: Net lease distribution facility in Mobile, AL.