Cove Capital Adds One of Alabama's Top Performing Multi-Tenant Retail Centers to Its Growing Debt-Free Delaware Statutory Trust Portfolio for 1031 Exchange Investors

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Mar 26, 2024, 08:55 ET

The Delaware Statutory Trust offering is a debt free multi-tenant retail center in Birmingham, AL.

LOS ANGELES, March 26, 2024 /PRNewswire/ -- Cove Capital Investments believes that now might be a good time to consider debt free multi-tenant retail for 1031 exchange DST investments. That's why Cove Capital is excited to announce they recently completed the acquisition of a popular multi-tenant asset in Birmingham, AL. Called, Cove Eastwood Village Opportunity 71 DST, this purchase was an all-cash acquisition and another multi-tenant retail asset for the growing Cove Capital DST portfolio, which includes 89 properties totaling 2,148,654 square feet of real estate across the United States. The DST property is made available to accredited investors only under Regulation D, Rule 506c.

About the Cove Eastwood Village 71 DST Investment

The Cove Eastwood Village 71 DST is a value-add DST investment offering as well as one of the number-one retail shopping centers in Birmingham, AL, a city that has shown significant economic growth over the past decade*, and strategically located in the Southeastern United States. This recent multi-tenant acquisition is located on one of the main thoroughfares in the region generating a high amount of both vehicle and foot traffic.

Some of the highlights of this Delaware Statutory Trust acquisition include the following:

Value-add opportunity.
Purchase price was below replacement cost.
Market rents are estimated to be $2-$3 higher than current asking rents.
Located in Birmingham, AL, with 116,944 residents and average household income of $106,636 both within 5 miles of the property.
New distribution facility opened adjacent to property, adding approximately 1,500 jobs to the area (not part of offering).

Cove Captial acquires top performing debt-free multi-tenant Delaware statutory trust offering in Birmingham, Alabama. For more information watch here: https://www.youtube.com/watch?v=ZIqwaHECpH0

Highly Trafficked Location

In addition, this asset is located along a highly trafficked corridor within the Birmingham region, including:

Positioned Just Off the Intersection of I-20 & Crestwood Blvd (SR-78) – Seeing a Combined 78,000+ Vehicles Per Day*
Within 6 miles of University of Alabama Birmingham, Home to Over 21,600 Full Time Students (2022 Fall Enrollment) *

Recession Resistant Tenant Mix

The Cove Eastwood Village 71 DST is anchored by a collection of recession resistant discount retailers. This mix of retail has historically proven to have done well through situations like the Great Financial Crisis of 2008 and COVID-19, when times are more difficult for consumers*.

According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the center was purchased by Cove Capital to contribute to its growing portfolio of debt-free real estate assets for 1031 exchange and direct cash investors. The retail center is also shadow-anchored by a high performing supercenter bringing a large amount of traffic to the center (not a part of the subject offering).

The Cove Eastwood Village DST is the #1 retail center in the market with many of the tenants ranking within the top percentile within their respective chains as top performers.

"We have stated before that we believe there is opportunity for multi-tenant retail assets acquired on a debt free basis especially for fully integrated real estate firms like Cove Capital Investments. We have a team of highly talented real estate professionals that know what to do and are not afraid to roll up their sleeves to get dirty doing it," said Kay.

The property was purchased by Cove Capital with 0% leverage (a debt free DST), for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with no risk of lender foreclosure or lender cash flow sweeps.

Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments explained, "The purchase of Cove Eastwood Village is a value-add strategy in an effort to potentially increase net operating income and property value/investor equity. What makes this property particularly appealing for our DST offering is that it is the #1 Retail Center in the market seeing an estimated 3.4M visits per year. The property is neighbor to multiple national tenants and is seeing street traffic of a combined 78,000 vehicles per day. The retail center's strategic location in Birmingham, AL, is in close proximity to the University of Alabama Birmingham, hosting over 21,600 full-time students (2022 Fall Enrollment). The location stands as a densely populated center in Birmingham, AL, with a population of 116,944 within a 5-mile radius of the property," explained Lapin. Lapin highlighted that this offering boasts a 96% occupancy rate, with recent tenant lease extensions and renewals indicating a strong tenant commitment to the location*.

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 more than 2.1 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and corporate headquarters asset classes. Over 1,600 accredited investors nationwide have trusted Cove Capital with their investment dollars.

For further information, please visit www.covecapitalinvestments.com or contact Cove Capital at (877) 899-1315 and via email at [email protected].

*Past performance is no guarantee of future results.

* Diversification does not guarantee profits or protect against losses.

* All offerings discussed, if any, are Regulation D, Rule 506c offerings available to accredited investors only. 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