Cove Capital Investments LLC, a Delaware statutory trust sponsor company that specializes in providing accredited investors access to debt-free investment options for their 1031 exchange and direct cash investments, announced its Cove Texas Net Lease 63 DST, a regulation D Rule 506c DST offering, is fully subscribed. The total amount of equity raised for the offering was $10.4 million.
According to Dwight Kay, managing member and founding partner of Cove Capital Investments, the 1031 exchange DST offering was made available to accredited 1031 exchange and direct cash investors as an all-cash/debt-free DST offering designed to potentially mitigate risk of lender foreclosure or lender cash flow sweeps. The 16,297-square-foot property is in Lewisville, Texas, a dynamic suburban community in the thriving Dallas-Fort Worth Metroplex.
“We would like to thank each of our clients who invested in this DST and all of the members of the Cove selling group including broker-dealers, registered representatives, and registered investment advisers,” said Kay.
Kay explained that the Cove Texas Net Lease 63 DST is a corporate net lease investment with a brand new 20-year lease with 2% annual rent increases. It also has a full corporate guarantee on the lease. The tenant is Guidepost Montessori, serving children ages 0-18 at more than 130 schools worldwide, according to Guidepost’s website.
“[Guidepost] has numerous locations nationally and globally with plans to continue the expansion of their [education] 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 Texas, 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 and so did the many 1031 exchange investors that participated in this offering,” said Chay Lapin, managing member and founding partner of Cove Capital Investments.
Like many of Cove Capital’s real estate acquisitions, the Cove Texas Net Lease 67 DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free offering with no risk of lender foreclosure or lender cash flow sweeps.
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible DST properties, as well as other real estate investment offerings. The team consists of acquisitions, asset management, accounting, due diligence, in-house counsel, investor relations, marketing and capital markets. Cove Capital has sponsored over 1.9 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors.
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