The new Delaware Statutory Trust offering consists of a rare net lease asset in the West Palm Beach MSA.
LOS ANGELES, Nov. 20, 2023 /PRNewswire/ — Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company announced it has completed the purchase of a newly constructed net lease asset in the West Palm Beach MSA., a Regulation D, Rule 506(c) offering that is targeting to raise $11.1 million.
According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the Delaware Statutory Trust property was purchased by Cove Capital as part of its growing portfolio of debt-free real estate assets for 1031 exchange and direct cash investors.
“We are excited about this unique Delaware Statutory Trust offering for several reasons. First, this is rare net lease real estate. The asset is located in a thriving community of the West Palm Beach MSA with a population of over 214,000 within a 5-mile radius. Second, the tenant is the largest national farm and ranch retail store brand in the nation. This coupled with the strategic location of the asset in Palm Beach County, which has an estimated $1.4B in agricultural sales, makes this a highly desirable offering for our investors,” said Kay.
“Our tenant is the largest operator of rural lifestyle retail stores in America. They have over 2,000 stores across 49 states and have been in business for over 80 years. It carries an investment grade credit rating by S&P of BBB and as a tenant, it is considered an essential business, one that paid rent throughout COVID-19 pandemic. We are excited to bring another high-quality, debt-free DST real estate investment option like the Cove Tractor Supply 60 DST which provides a solid opportunity to our investors. With this asset, we are free to pursue whichever exit strategy provides the best potential opportunity to our investors without being constricted by lender prepayment penalties and vast defeasance costs. Our emphasis on debt-free 1031 exchange investing has been an important differentiator in the marketplace, and an attractive ingredient for our growing number of investors, advisors, broker/dealers, and RIA’s,” said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments.
Like many of Cove Capital’s real estate acquisitions, the offering was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps.
About Cove Capital Investments
Cove Capital Investments is a DST sponsor company providing accredited investors access to 1031 exchange eligible Delaware Statutory Trust properties as well as other real estate investment offerings. The Cove Capital team consists of Acquisitions, Asset Management, Accounting, In-House Counsel, Investor Relations, Marketing and Capital Markets. Cove Capital maintains a robust current inventory of DST and private equity real estate offerings potentially available to investors. Cove Capital Investments has sponsored and co-sponsored the syndication of more than 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.
*Past performance is no guarantee of future results.
* Diversification does not guarantee profits or protect against losses.
*This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. This material contains information that has been obtained from sources believed to be reliable. However, Cove Capital Investments, LLC does not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances. Securities offered through FNEX Capital, member FINRA, SIPC.
SOURCE Cove Capital Investments
Originally published at https://www.prnewswire.com/news-releases/cove-capital-investments-acquires-asset-in-riviera-beach-fl-as-part-of-its-debt-free-tractor-net-lease-60-dst-301993682.html
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