Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company, announced it has successfully completed the purchase of a net lease property in Quinlan, TX. The purchase is the firm’s Tractor Net Lease 79 DST, a Regulation D, Rule 506(c) offering that is targeted to raise $6,420,509.
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.
“The asset, located in the income tax-free state of Texas, was newly constructed in 2023. It features a 15-year corporate net lease with multiple extension options and rent increases every five years during the primary term and options.” said Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments. “The tenant has a market cap of over $20 billion dollars, is publicly traded and holds an investment grade credit rating,” said Kay. 1
“We are excited to introduce another quality, debt-free DST real estate investment option. The tenant, considered an essential business, paid rent throughout the COVID-19 pandemic. They employ over 40,000 people, operate more than 1,900 stores across 49 states, and generated total revenue of over $14 billion dollars in 2023.,” said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments.2
The property is in Texas, a pro-business and income tax-free state as well is strategically situated in Quinlan, TX, the asset is highly visible and is directly off Highway 276. The area also boasts an average household income of over $77,000 within five miles of the property. Additionally, it serves as the gateway to the 376-acre Lake Tawakoni State Park, offering a 200-mile shoreline.3
“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 nearly 2.5 million square feet,” said Kay.
Like many of Cove Capital’s real estate acquisitions, the Cove Tractor Net Lease 79 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.
Sources:
1, 2 and 3 Offering Memorandum
About Cove Capital Investments
Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.4 million square feet of real estate in 33 states nationwide. Over 1,800 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 info@covecapitalinvestments.com.
*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.
