Cove Capital Adds New Mexico Distribution Center to DST Lineup

Cove Capital Investments has acquired a newly constructed industrial distribution center in New Mexico for its Cove Essential Net Lease Industrial 106 DST, a Regulation D, Rule 506(c) offering seeking just over $5.5 million in equity. 

The property, completed in 2025, was purpose-built for its tenant and designed to support modern supply chain operations, with additional capacity for future expansion. Managing Member and Co-Founder Dwight Kay noted that the asset is fully leased to a leading supply chain operator that recently executed a new 10-year lease, signaling long-term commitment. 

The offering follows Cove’s zero-leverage DST structure, a strategy Co-Founder Chay Lapin emphasized as central to investor protection. By eliminating property-level debt, the firm aims to reduce exposure to lender-driven risks such as foreclosure, cash flow sweeps, or operational restrictions. Lapin added that Cove invests alongside its clients in each DST offering. 

The vehicle also includes an optional 721 exchange feature, allowing investors to evaluate and elect participation in a potential REIT roll-up after conducting due diligence on factors such as leverage, dividend coverage and tax considerations. 

The New Mexico asset extends a busy 2025 deal slate that has included single-tenant industrial and retail properties in Mississippi, Texas, Washington, Florida, Virginia, Kentucky, and Arizona, as well as an 83‑unit build‑to‑rent community in San Antonio.  

Across the platform, Cove Capital now oversees more than 3.5 million square feet spanning 126 properties nationwide. 

Pictured: Industrial distribution center in New Mexico.