Cove Capital Locks In $27.7M for Five‑State Net Lease, Retail DST
Cove Capital Investments has fully subscribed its Cove Diversified Portfolio 88 DST, raising $27.7 million in equity as demand for tax-advantaged, income-oriented real estate investments remains strong.
The Regulation D Rule 506(c) offering is backed by a five-property portfolio spanning Kentucky, Texas, South Carolina, New York and California, totaling approximately 211,000 square feet across net lease, logistics and multi-tenant retail assets. The all-cash, debt-free structure was designed to appeal to accredited investors seeking stability and downside protection.
According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the 1031 exchange DST offering was structured to potentially reduce financing-related risks. “The portfolio’s net lease and logistics/distribution assets provide the potential for predictable income, while its multi-tenant retail asset positions investors to capitalize on potential value-add upside and a diversified tenant base,” Kay said.
Chay Lapin, Managing Member and Founding Partner, emphasized alignment with investors, noting that firm principals co-invested in the offering. That structure, he said, reinforces confidence in the portfolio’s long-term performance.
Kay added that the DST includes a flexible exit component through an optional 721 exchange. “This means our investors will have the option to participate in a future potential 721 UPREIT or not—at their discretion,” he said, noting investors can evaluate factors such as REIT leverage, dividend coverage and tax protections before committing.
The latest closing continues an active year for Cove Capital, following the full subscription of the $12.1 million Cove Essential Net Lease Industrial 114 DST, 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 operates a portfolio of over 3.7 million square feet across its 129-asset real estate portfolio nationwide.
Pictured: Cove Diversified Portfolio 88