Cove Capital: Debt-Free Distribution Center Acquisition
- Los Angeles-based Cove Capital Investments, LLC, has broadened its real estate holdings with the acquisition of a distribution center in Arizona.
- Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, emphasized the location's importance and the tenant's commitment.
- Chay Lapin, also a Managing member and Co-Founder, pointed out the potential for a 721 Exchange rollup as a future exit strategy.
Cove Capital makes a strategic move, adding an Arizona distribution center to its debt-free portfolio. This expansion underscores Cove Capital’s commitment to providing lucrative opportunities for investors seeking 1031 exchange options and direct cash investments. The strategically positioned property connects key markets, enhancing logistical efficiency. This acquisition is for its Essential Net Lease Industrial 87 DST, a Regulation D, Rule 506(c) offering. Managing members highlight the tenant’s commitment and potential for a 721 exchange rollup, offering investment flexibility.This advancement, reported by News Directory 3, follows recent accomplished offerings and underlines Cove Capital’s growth trajectory. Will their debt-free strategy continue to deliver? Discover what’s next …
Cove Capital Expands Debt-Free portfolio wiht Arizona Distribution Center Acquisition
Updated May 26, 2025
Los Angeles-based Cove Capital Investments, LLC, has broadened its real estate holdings with the acquisition of a distribution center in Arizona. The location is strategically positioned to connect Tucson,phoenix,and El paso. This acquisition is for its Essential Net Lease Industrial 87 DST, a Regulation D, Rule 506(c) offering seeking over $5.8 million in capital. The debt-free portfolio expansion aligns with Cove Capital’s investment strategy, targeting both 1031 exchange and direct cash investors.
Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, emphasized the location’s importance and the tenant’s commitment. He noted the large essential industrial asset is ideally situated for a leading player in the global logistics industry. The tenant’s recent commitment signals continued operations at the location for the foreseeable future.
Chay Lapin, also a Managing member and Co-Founder, pointed out the potential for a 721 Exchange rollup as a future exit strategy. Lapin said investors will have the option to participate in a potential 721 UPREIT, unlike forced participation in other DSTs.
Cove Capital manages a portfolio spanning over 2.5 million square feet of real estate across 33 states. The Arizona distribution center acquisition follows the recent finalization of the Essential Net Lease Portfolio 89 DST offering, which included facilities in Joplin, MO, and Sylva, NC. In April, the firm also completed its Texas small Bay Industrial Portfolio 86 DST offering.
This large essential industrial asset is captivating for a number of reasons. First, the location is ideal for our tenant who is a leading player in the global logistics industry.second, the tenant recently showed commitment to continued operations at this location for the foreseeable future.
Instead of signing up today in a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not – at their discretion.
What’s next
Cove Capital plans to continue its strategy of acquiring strategically located, debt-free real estate assets, focusing on essential net lease industrial properties to expand its portfolio and provide investment opportunities for 1031 exchange and direct cash investors.