Cove Capital Investments Acquires a Corporate Backed Net Lease Asset in Hollywood, FL as Part of Its Cove Debt Free Opportunity 72 Delaware Statutory Trust

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Mar 05, 2024, 08:25 ET

LOS ANGELES, March 5, 2024 /PRNewswire/ -- Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company, announced it has completed the purchase of a corporate backed net lease asset in Hollywood, FL. The purchase is the firm's Florida Net Lease 72 DST, a Regulation D, Rule 506(c) offering that is targeted to raise $14,189,563.

According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the property was purchased by Cove Capital as part of its growing portfolio of debt-free Delaware Statutory Trust real estate assets for 1031 exchange and direct cash investors.

"We are excited to add another corporate backed net lease asset to our Cove portfolio. The Florida Net Lease 72 DST has a brand new 20-year net lease with annual rent increases and has a full corporate guaranty on the lease. Our tenant has numerous locations nationally and globally with plans to continue the expansion of their business model. We felt confident our investors would be attracted to the type of asset, location, the tenant, and the overall business strategy set forth in the Private Placement Memorandum," said Kay.

In addition, the property is located in the state of Florida which is first, an income tax free state and second, considered by many to be very business friendly. "We felt confident in the tenant, location and debt free nature of the offering," said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments.

Like many of Cove Capital's real estate acquisitions, the Florida Net Lease 72 DST was acquired with 0% leverage 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.

"Our Cove Acquisitions Team recognized the significance of adding this property to our Cove portfolio. Not only is the property located near a main thoroughfare with a daily traffic flow of over 18,000 vehicles per day, but there is also approximately $1.5 Billion in development planned, under construction or recently completed in Hollywood, FL making the location of this offering uniquely strategic to our tenant," said Lapin.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.1 million square feet of real estate in 33 states nationwide. Over 1,600 investors have trusted Cove Capital with their 1031 exchange and investment dollars, many of them being repeat investors in multiple DST offerings over the years. Our offerings are attractive to those investors seeking to lower risk potential as the majority of Cove Capital's DST offerings are debt free (no mortgage - no lender foreclosure risk). To sign up for a list of the current Cove Capital offerings available for 1031 exchange and direct investments please visit www.covecapitalinvestments.com.

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.

*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