Dwight Kay and Chay Lapin, Founders of Cove Capital Investments, Announce the Acquisition of a Small Bay Industrial Asset in San Antonio, TX, to be Included in the Cove Texas Small Bay 85 DST

LOS ANGELES, Nov. 26, 2024 /PRNewswire/ -- Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company, announced it has successfully completed the purchase of a Small Bay Industrial Asset in San Antonio, Texas. The purchase will be included in the Texas Small Bay 85 Flex DST, a Regulation D, Rule 506(c) offering that is targeted to raise $15,374,450.00.

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. Currently, Cove Capital Investments includes 107 Delaware Statutory Trust properties in its national portfolio.

"The 68,400 SF asset was constructed in 2000 and boasts a dedicated tenant base with an average tenant tenure of 9.8 years and a Weighted Average Lease Term (WALT) of over 5.4 years.," said Kay. "This is an opportunity for accredited investors to invest in, via a 1031 exchange or a direct cash investment at a $100,000 minimum, a 100% leased multi-tenant flex/industrial asset located in the coveted northwest submarket of San Antonio, Texas." said Kay.

Located just one-third of a mile west of IH-10 and less than two miles from the IH-10 and Loop 1604 intersection, the property benefits from prominent visibility and exposure to over 33,000 vehicles per day. 

"We are excited to introduce another debt-free DST real estate investment option. The Texas Small Bay 85 Flex DST offers high demand flex/industrial space that rarely becomes available in this sought-after submarket," said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments. "Average rents at the Property are considerably below market rents providing us the potential opportunity to raise rents to market as leases roll. Our debt free strategy is the perfect fit for this type of asset and we are grateful for this opportunity not only to provide a quality offering to our 1031 DST investors but also for ourselves as Dwight and I will be personally investing in this asset," added Lapin.2

Like many of Cove Capital's real estate acquisitions, the Cove Texas Small Bay 85 Flex 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.

"This investment highlights our dedication to acquiring quality assets in strategic locations that provide investment potential for our investors. We look forward to our ownership period and are honored to add this location to our portfolio of over 2.6 million square feet," said Kay.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.6 million square feet of real estate in 33 states nationwide. Over 1,900 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