Cove Capital Investments has completed the acquisition of two complementary assets—a custom-built industrial distribution facility in Norton, VA, and a 46,647-square-foot multi-tenant retail center in Lexington, KY—to establish the Cove Diversified Portfolio 94 DST. Structured as a Regulation D, Rule 506(c) offering, the DST seeks to raise $15.6 million in equity and is fully debt-free, with Cove’s principals investing alongside clients. 

The industrial property, constructed in 2024, serves an essential business tenant and was acquired at below-market pricing, according to managing member and co-founder Dwight Kay. The retail center, which is 97% leased with 84% of income coming from national tenants, provides staggered lease expirations that create potential for rent growth and value-add opportunities. 

“This portfolio combines what we call an ‘Anchor’ asset, providing income stability, with a ‘Buoy’ asset, offering growth and inflation-hedging potential,” Kay explained. Co-founder Chay Lapin added that investors will also have the optionality of participating in a future 721 UPREIT exchange, rather than being locked into one upfront. 

The offering follows Cove’s August acquisition of an 83-unit build-to-rent community in San Antonio, TX, and earlier purchases of a FedEx Ground facility in Arizona and a Tractor Supply Co. property in New Mexico. Headquartered in Los Angeles, Cove Capital now manages a debt-free portfolio spanning more than 3.3 million square feet across 35 states. 

Pictured: Norton, VA distribution center (inset) and multi-tenant retail center in Lexington, KY. 

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