Cove Capital Investments LLC, a Delaware statutory trust sponsor company, announced that its Regulation D Rule 506(c) Eastwood Village Opportunity 71 DST is fully subscribed. The offering, launched in January 2024, raised $22.8 million from accredited investors.
The trust owns a multitenant retail center in Birmingham, Ala., which was acquired for $17.6 million. Institutional Property Advisors, a division of Marcus & Millichap, brokered the sale of Eastwood Village to Cove Capital. A Walmart, not included in the transaction, anchors the 130,056-square-foot shopping center. It is stabilized at 96% occupancy and includes national tenants such as Ross, Five Below, Office Depot, Michael’s, and Party City. The center experiences 3.4 million annual visits, making it the number one community shopping center in the market, according to a Cove Capital marketing brochure.
Dwight Kay, managing member and founding partner of Cove Capital, said 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.
“We are excited to add another opportunistic acquisition for investors. The Cove Eastwood Village Opportunity 71 DST is 97% occupied with recent tenant lease extensions and renewals showing strong commitment to the location,” said Kay. “The property has a value-add strategy in an effort to potentially increase net operating income and property value/investor equity.”
According to Cove Capital, the Birmingham, Ala., asset was purchased well below replacement cost and is in a popular retail center that experiences approximately 3.4 million annual visits. Positioned just off the intersection of Interstate 20 and Crestwood Boulevard, the property sees approximately 78,000 vehicles per day.
“The property is adjacent to a brand new e-commerce distribution facility including over 1,500 jobs,” said Chay Lapin, managing member and founding partner of Cove Capital. “The property is anchored by a high-performing national tenant as well as surrounded by several [other] large national tenants.”
Like many of Cove Capital’s real estate acquisitions – e.g., the purchase of The Peanut Factory Lofts through Cove Capital San Antonio Multifamily 74 DST earlier this month; the Dallas-area Tractor Supply store acquisition on behalf of Cove Tractor Net Lease 79 DST; and the three net-lease properties in Georgia and North Carolina as part of its Essential Net Lease 81 DST – the Eastwood Village Opportunity 71 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.
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 2.4 million square feet of 1031 DST and real estate offerings in the multifamily, net lease, industrial, and office sectors in 33 states nationwide.
For more Cove Capital news, please visit their directory page.
Read the full article here
