Cove Capital Investments Completes Acquisition of Distribution Facility in Mobile, Alabama for Essential Net Lease Industrial 114 DST in 100% Debt-Free Transaction

Brand-New 2025 Build-to-Suit Facility Features 10-Year Net Lease with Best-in-Class Operator, Strategic Port and Interstate Access location, and Fully Optional 721 Exchange Exit

LOS ANGELES, April 30, 2026 /PRNewswire/ -- Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company specializing in providing accredited investors with debt-free options for 1031 exchanges and direct cash investments, announced the establishment of the Cove Essential Net Lease Industrial 114 DST, a Regulation D, Rule 506(c) offering that is targeting $12,126,736 in equity.

The property, located in Mobile, AL is a 23,018 square foot build-to-suit industrial distribution facility serving as a Product Exchange Center for a best-in-class operator and division of a multinational food and beverage corporation.  The asset features a recently executed 10-year net lease.

Strategic Location with Port and Interstate Access

The Cove Essential Net Lease Industrial 114 is positioned directly along Interstate 65 with immediate connectivity to Interstate 10, two of the most critical freight corridors in the United States. Additionally, the property benefits from its proximity to the Port of Mobile, which Forbes and Yahoo have ranked as the second fastest growing port in the nation over the past decade. The Alabama Port Authority is currently completing a significant deepening and widening initiative that will make Mobile the deepest port on the Gulf Coast, enhancing vessel capacity and regional economic growth potential.

Best-in-Class Tenant with Long-Term Commitment

The tenant is a cornerstone of the U.S. snack food market and previously operated from an older facility in the area for over 20 years. The company strategically relocated to this new build-to-suit facility to reduce transportation times and support anticipated growth along the surrounding logistics corridor.

Debt-Free Structure and Sponsor Co-Investment

According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, this acquisition highlights the firm's commitment to a debt-free approach.

"Our zero-leverage DST model has been a foundational philosophy of Cove Capital as a strategic investment thesis designed to potentially reduce risk and preserve investor capital. By removing debt from the equation, we inherently shield investors from lender-driven threats like foreclosure, cash flow sweeps, and 'go-dark' provisions that can destabilize a property," explained Kay.

In addition, Cove Capital principals co-invest their own capital into each offering, something that many DST sponsors do not do.

Fully Optional 721 Exchange Exit

While many sponsors incorporate mandatory UPREIT roll-ups into their DST offerings, Cove Capital takes a fundamentally different approach. The Cove Essential Net Lease Industrial 114 DST provides a fully optional 721 Exchange exit, ensuring investors retain ultimate control over their financial future.

"In a market where forced UPREIT exits are becoming commonplace, we believe in giving investors a choice.  Our optional 721 path means that when a potential roll-up arises, our investors have the right to conduct thorough due diligence on the destination REIT and then decide if it's the right move for them," said Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments.

Tax-Optimized Cost Segregation

The offering also includes a tax-optimized cost segregation report available to investors seeking enhanced tax efficiencies.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3.6 million square feet across its 127-asset real estate portfolio 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. The majority of Cove Capital's DST offerings are debt-free, featuring no mortgage and no lender foreclosure risk.

To sign up for a list of current Cove Capital offerings available for 1031 exchange and direct investments, please visit www.covecapitalinvestments.com.

For further information, please contact Cove Capital at (877) 899-1315 or via email at [email protected].

Disclosures:
*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. 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. 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, 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. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through FNEX Capital, member FINRA, SIPC.*

SOURCE Cove Capital Investments