Cove Capital Buys Trophy Pharmacy in Downtown Encinitas, CA for Its Cove Pharmacy Net Lease 65 DST

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Mar 02, 2023, 08:17 ET

The popular national pharmacy recently signed a long-term, corporately backed lease reasserting its desire to remain in the downtown Encinitas location just blocks from San Diego's famous Moonlight Beach.

LOS ANGELES, March 2, 2023 /PRNewswire/ -- Cove Capital Investments, LLC, a private equity real estate firm and DST sponsor company announced it has completed the acquisition of a net lease national pharmacy in Encinitas, CA. The asset is an 11,370 square foot free-standing building located in a dense commercial thoroughfare and retail trade area in one of California's most popular beach communities.

According to Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments, the net lease asset was acquired as part of Cove's Net Lease 65 DST, LLC, a Reg D, Rule 506C offering. The fund seeks to raise $10 million from accredited investors with a minimum investment of $50,000.

"While each one of our offerings provides investors unique investment advantages,we feel the acquisition of the of this leading pharmacy brand asset in downtown Encinitas will be a very attractive offering to Cove Capital investors. First, the property is located in one of the most beautiful and affluent coastal communities in Southern California, second the asset is secured by a new long-term net lease that is corporately guaranteed by WBA, Inc., a publicly traded firm that, according to CNBC, generated $33 billion in revenue in 2021. In addition, this Encinitas pharmacy location is one of the top performing stores among the chain's 8,802 locations with reported sales of $2,500,000," said Lapin.

Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments explained that the Cove Pharmacy Net Lease 65 is being offered to accredited investors as a 100% unleveraged asset available for 1031 exchange and direct cash investments.

"The vast majority of investment real estate offerings are leveraged - especially in the DST space. Like Cove Pharmacy Net Lease 65, Cove Capital has purchased the majority of its DST assets specifically for debt-free offerings. We believe this strategy is an attractive option for those investors seeking to potentially mitigate risk by avoiding leverage and long-term mortgages encumbering the properties. This unleveraged nature of the DST will pair nicely with the fact that the property neighbors multiple regional retail centers occupied by national tenants, including Spouts Farmers

Market, Kohl's, Peet's Coffee, and LA Fitness. We believe that in addition to our investors, the broker/dealers, registered representatives, and RIA's will also be attracted to this particular DST offering," said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.

About Cove Capital Investments
Cove Capital Investments is a private equity real estate firm and 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, Due Diligence, 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 over 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors.

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 not a guarantee of future results. 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 correspondence 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, Limited Liability Company owned (LLC) properties, LLC interests, 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 net lease properties, short term leases associated with net lease 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. Nothing contained in this material, including in this disclosure or in any other disclosure in this message, constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.

SOURCE Cove Capital Investments