Cove Capital Investments Acquires Industrial Distribution Facility in a 100% Debt-Free Transaction for Its New Cove Essential Net Lease Industrial 116 DST Offering

Located in Paducah, Kentucky, the industrial distribution facility is 100% leased to a leading logistics company under a newly executed long-term lease extension.

LOS ANGELES, June 1, 2026 /PRNewswire/ -- Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company that specializes in providing accredited investors access to debt-free options for their 1031 exchange, DST and direct cash investments, announced it has recently completed the acquisition of a mission-critical distribution facility to finalize its new Cove Essential Net Lease Industrial 116 DST offering. The acquisition is a Regulation D, Rule 506(c) offering that is targeting a $14,554,008 equity raise.

According to Dwight Kay, Managing Member and Founder of Cove Capital Investments, the Cove Essential Net Lease Industrial 116 DST is unique in that it provides investors the opportunity to invest in a highly sought-after industrial asset with zero leverage and a newly executed long-term lease extension from one of the nation's premier logistics operators.

"This distribution facility is compelling for a number of reasons. First, it is 100% leased to a leading logistics operator under a newly executed long-term lease extension, demonstrating the tenant's strong long-term commitment to this location. Second, the facility serves as a primary operation in the Paducah market, making it critical to the tenant's distribution network. Third, this offering is a fully debt-free investment—no mortgage, no lender foreclosure risk—which we believe provides investors with a more conservative DST investment than many other DST Sponsors 1031 properties that have debt attached to them," explained Kay.

Strategic Market Position in a Logistics Hub

Paducah serves as a strategically positioned logistics node with immediate access to six U.S. interstates, five Class-One rail carriers, and river transport connections via the Tennessee and Ohio Rivers to the ports of Mobile and New Orleans. Demographically, the site serves approximately 175,000 people within a 25-mile radius and roughly 80,000 within 10 miles, supporting its role as a critical regional distribution point.

The business climate in Paducah and the surrounding McCracken County area is notably pro-business, with a wide catalog of incentives, including no-cost workforce training, sales and use tax abatements, and jobs tax credits.

Optimized 721 UPREIT Potential

According to Chay Lapin, Managing Member and Founder of Cove Capital Investments, the Cove Essential Net Lease Industrial 116 DST has the potential for an optional 721 UPREIT exit strategy.

"The Cove Essential Net Lease Industrial 116 DST offering provides investors the possibility of using the 721 Exchange rollup as a fully optional exit strategy. Unlike many sponsors with forced 721 UPREITs, Cove Capital provides investors with full optionality whereby they are able to participate in the 721 UPREIT if they choose to do so, but at their sole discretion. This full optionality is a key differentiator in today's marketplace of DST and 721 UPREIT vehicles," said Lapin.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3.7 million square feet of real estate across 129 properties nationwide. Over 2,600 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.

* Potential cash flow, potential returns and potential appreciation are not guaranteed.

* 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 properties, short term leases, 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. 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