Cove Capital Investments, LLC, a Los Angeles-based real estate investment firm, has acquired a strategically located distribution center connecting Tucson, Phoenix, and El Paso for its Essential Net Lease Industrial 87 DST, a Regulation D, Rule 506(c) offering targeting over $5.8 million in capital. 

The acquisition aligns with Cove Capital’s strategy of purchasing debt-free real estate assets for 1031 exchange and direct cash investors. “This large essential industrial asset is interesting for a number of reasons. First, the location is ideal for our tenant who is a leading player in the global logistics industry. Second, the tenant recently showed commitment to continued operations at this location for the foreseeable future,” said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments. 

Chay Lapin, also a Managing Member and Co-Founder, highlighted the potential for a 721 Exchange rollup as an exit strategy. “Instead of signing up today in a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not – at their discretion.” 

Last week, the firm announced it completed the acquisition of two properties, finalizing its Essential Net Lease Portfolio 89 DST offering. The portfolio consists of nearly 69,000 square feet across two newly constructed facilities in Joplin, MO, and Sylva, NC. In April, the firm finalized its Texas Small Bay Industrial Portfolio 86 DST offering by acquiring two properties, targeting nearly $14.8 million in capital. 

Cove Capital manages a portfolio spanning over 2.5 million square feet of real estate across 33 states.   

Pictured: Distribution facility in Arizona