Cove Capital Investments Takes Another Logistics/Distribution Delaware Statutory Trust Investment Offering Full-Cycle to Deliver a 8.67% Average Annualized Return* to Investors on a Debt Free DST

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Oct 11, 2022, 08:17 ET

The Cove Dulles Distribution DST went full cycle after being sold to a private real estate investment group for $8.15 million, delivering uninterrupted distributions for Cove Capital's accredited investors on a debt free basis.

Key Highlights:

Cove Capital takes custom logistics/distribution DST property full-cycle
Cove Capital correctly anticipated the Dulles International Airport adjacent location combined with the lack of quality warehouse space nationwide created a favorable investment environment.
The DST investment realized an 8.67% average annualized return for investors*
The Cove Capital DST offering successfully delivered uninterrupted monthly distributions throughout the hold period and throughout the COVID-19 pandemic.

LOS ANGELES, Oct. 11, 2022 /PRNewswire/ -- Cove Capital Investments, a private equity real estate firm and DST sponsor company that specializes in providing accredited investors access to debt-free DST investment options for their 1031 exchange and direct cash investments, announced it successfully brought another one of its strategically located logistics DST offerings full cycle on behalf of multiple 1031 exchange and direct cash investors.

"Full Cycle" is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.

According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, the property, Cove Dulles Distribution DST, located in the Washington D.C. metro area, sold for $8,150,000 on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the same day that the property was purchased, realized a 126.44% total return on their investments, or a 8.67% average annualized return from their DST 1031 investment*.

"The strategically located property was offered to investors as a debt-free investment to create a lower-risk profile for both 1031 Exchange and direct cash investors. We are very pleased to have provided another successful custom DST investment opportunity for our clients that resulted in a full-cycle liquidity event," said Kay.

Most significantly, Kay noted that Cove Capital was able to provide its investors uninterrupted monthly distributions throughout the hold period and during the entire COVID-19 pandemic, a significant accomplishment considering the volatility of all investments during the Coronavirus pandemic.

"While past performance does not guarantee or indicate the likelihood of future results, this particular investment is a great example of how Cove Capital creates debt-free offerings to specifically mitigate the potential risks associated with leveraged real estate offerings while also providing greater flexibility for our investors. As a result, the Cove Dulles Distribution DST was able to provide our investors monthly distributions and appreciation without the use and added risk of leverage. The positive return marks a significant victory for our investors and another successful outcome for the entire Cove team including the hundreds of loyal Cove clients as well as the many Broker Dealers, Registered Representatives and Registered Investment Advisors that have placed their trust in Cove Capital," said Kay.

Cove Capital's Managing Member and Co-Founder Chay Lapin further explained that this newly constructed logistics DST asset consisted of a distribution asset located in a mature industrial area of Sterling, VA, just north of Dulles International Airport in the Washington D.C. metro area. Lapin also noted the facility was secured by an Fortune 500 convenient foods distribution tenant with a long-term 10 year net lease.

"Our Cove Capital acquisitions and asset management team recognized that this newly constructed logistics facility, located in a highly populated logistics corridor and 100% occupied by a Fortune 500 distribution tenant created a potentially favorable investment scenario for our investors. Like all of our investments, this Delaware Statutory Trust asset was carefully vetted by the Cove Capital team of due diligence and analytics experts before we made it available as a debt-free DST to our Cove Capital investment family. The offering's monthly distributions performed exactly as we had projected per the Private Placement Memorandum (PPM). Although we never guarantee any returns, distributions or appreciation and investors need to thoroughly read our offerings PPMs which detail the business plan and risk factors of investing, we are honored to have been able to provide this positive outcome to our investors, many of which are reinvesting via a 1031 exchange into one of Cove Capitals currently available DST investment opportunities," said Lapin.

About Cove Capital Investments

Cove Capital Investments is a private equity real estate firm 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 the syndication of over 1.5 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial and office sectors. The principals of Cove Capital Investments seek to invest alongside investors in each of their offerings.

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

* Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.

* Annualized return is defined as a total return including profit on sale and monthly distributions earned on an annualized basis.

** Total return consists of initial return of investor principal, monthly distributions, and profit upon sale.

*** All return calculations are calculated as if the investor closed on the DST investment at the same time the property was purchased.

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. Securities offered through FNEX Capital, member FINRA, SIPC.

SOURCE Cove Capital Investments