Cove Capital Investments Acquires Saddle Creek Crossing Retail Center in a 100% Debt-Free Transaction for Its New Cove Kansas Retail DST 109 Offering

The 110,061 square foot "necessity" retail center in Wichita, Kansas features a potential compelling value-add opportunity with below market rental rates.

LOS ANGELES, May 20, 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 Saddle Creek Crossing to finalize its new Cove Kansas Retail DST 109 offering. The acquisition is a Regulation D, Rule 506(c) offering that is targeting a $12,951,877 equity raise.

According to Dwight Kay, Managing Member and Founder of Cove Capital Investments, the Cove Kansas Retail DST 109 is unique in that it provides investors the opportunity to invest in a high-traffic retail center located just west of I-35 in Wichita, Kansas, with significant mark-to-market rent upside potential.*

"This retail center is compelling for a number of reasons. First, with average in-place rents at just $7.71 per square foot while market rents range from $12–$16 per square foot, we believe there is a meaningful opportunity to add value by potentially capturing mark-to-market rent increases as leases roll. Second, the property is currently 96.37% occupied in a market where retail vacancy sits at approximately 3.0%, creating a strong supply-demand dynamic. 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 1031 properties that have balloon mortgages attached to them," explained Kay.*

Attractive Acquisition Basis Creates Potential Embedded Value

According to Kay, Cove Capital acquired the Cove Kansas Retail DST 109 for an all-cash purchase price of approximately $93 per square foot. This basis is significantly below both estimated replacement cost of $180–$200 per square foot and recent comparable retail transactions in the region trading closer to $114 per square foot. Cove believes its debt-free acquisition structure enabled the firm to place the property under contract at a price well below market, potentially creating immediate embedded value for investors.*

Multiple Upside Opportunities Beyond Mark-to-Market Rents

In addition to the operational value-add strategy focused on renewing approximately 11,168 square feet of leases over the next 2–3 years, the asset includes approximately 4,000 square feet of warehouse space creating another potential NOI (Net Operating Income) driver as well as a 37,000 square foot vacant land parcel with the potential for yard storage income.

Best in Class 721 UPREIT Characteristics

According Chay Lapin, managing member and Founder of Cove Capital Investments, the Cove Kansas Retail DST 109 has the potential for a 721 UPREIT however it utilizes best in class 721 strategies that are far beyond what other REIT sponsors are offering.

"The Cove Kansas Retail DST 109 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.

Sponsor Co-Investment and Strong Income Potential

Cove Capital principals are investing their own dollars into the offering. The property offers strong income potential for investors via monthly ACH direct deposit.*

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