Cove Capital Investments, LLC announced its Cove Diversified Portfolio 88 DST, a Regulation D Rule 506(c) offering, is fully subscribed. The total equity raised was $27,689,229.
The all-cash, debt-free DST structure was designed to potentially mitigate the risk of lender foreclosure or cash flow sweeps.
“We thank our clients and the entire Cove selling group,” said Dwight Kay, Managing Member and Founding Partner. “Cove Capital is now considered one of the largest providers of debt-free Delaware Statutory Trust offerings in the nation.”
A Diversified Five-Asset, Five-State Portfolio
The portfolio consists of five essential net lease and retail assets across Kentucky, Texas, South Carolina, New York, and California. The unlevered portfolio comprises approximately 211,000 square feet of critical distribution, single-tenant net lease, and multi-tenant retail assets.
“The portfolio provides potential for predictable income while its multi-tenant retail asset positions investors for value-add upside,” said Kay. “Our focus remains on capital preservation, durable cash flow, and risk-adjusted returns.”
Sponsor Co-Investment and Debt-Free Structure
Chay Lapin, Managing Member and Founding Partner, noted that Cove Capital principals have invested their own capital alongside investors. “Cove Capital doesn’t just sponsor offerings. We have personally committed capital to this portfolio — something many DST sponsors do not do.”
All five assets were acquired with 0% leverage, providing no risk of lender foreclosure or cash flow sweeps.
“Cove Capital recognized early on a void in the market for debt-free 1031 exchange DST options. Our emphasis on debt-free investing has been an important differentiator,” said Lapin.
Fully Optional 721 Exchange Exit Strategy
The offering includes a fully optional 721 Exchange rollup as a potential exit strategy. Investors may choose to participate in a future UPREIT or not, at their discretion. If a potential UPREIT arises, investors can analyze the destination REIT’s debt levels, dividend coverage ratios, use of floating rate debt, and whether a Tax Protection Agreement is offered.
“Cove Capital is a big believer in fully optional REIT exit options as opposed to forced 721 exchanges,” explained Kay.
About Cove Capital Investments
Cove Capital operates over 3.7 million square feet across 129 assets nationwide. Over 2,600 investors have trusted Cove Capital with their 1031 exchange dollars, many as repeat investors. Most Cove Capital DST offerings are debt-free, featuring no mortgage and no lender foreclosure risk. For more information, visit www.covecapitalinvestments.com.
Past performance does not guarantee future results. This does not constitute an offer to sell securities. Offers can only be made by the Private Placement Memorandum. Investing in DST properties involves material risks, including loss of entire principal. Securities offered through FNEX Capital, member FINRA, SIPC.
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