Cove Capital Investments Completes Acquisition of Two Last-Mile Industrial Distribution Assets for its Essential Net Lease Delaware Statutory Trust 89 Offering in a 100% Debt-Free Transaction

Cove Capital Investments, LLC ("Cove Capital") announced it has completed the acquisition of its Essential Net Lease 89 portfolio featuring two last-mile industrial distribution assets located in supply chain efficient locations.

LOS ANGELES, May 8, 2025 /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 and direct cash investments, announced it has recently completed the acquisition of two properties to finalize its new Essential Net Lease Portfolio 89 Delaware Statutory Trust offering.

According to Dwight Kay, Managing Member and Founder of Cove Capital Investments, the Cove Essential Net Lease Portfolio 89 DST offering includes a two building portfolio totaling 68,967 square feet located in Joplin, MO and Sylva, NC.

"This essential net lease portfolio provides investors high-quality, newly-constructed assets that are strategically located in multiple geographic locations. Both locations are near transportation arteries making them essential for last-mile distribution facilities. The assets are 100% leased to high quality tenants, with long-term leases in place. We believe this portfolio offers significant income potential for investors, with the added benefit of providing enhanced geographic diversification. In addition, like all of Cove Capital's offerings, this Essential Net Lease portfolio was acquired as an all-cash transaction with the purposeful investment strategy for our investors of mitigating common risks associated with real estate debt, such as mortgage foreclosure, cash flow sweep clauses, and go-dark provisions. Consistent with most Cove Capital offerings, the firm's principals will personally invest in this opportunity alongside our investors—demonstrating our shared commitment and aligned interests," said Kay.

Investment Highlights:
The first building is a newly constructed, build-to-suit last-mile distribution facility for a national home improvement chain located in Joplin, MO. This property features 63,000 square feet and features 20 dock high doors, a supply chain-optimized location with highway access serving key Midwest markets, and sits in an established industrial corridor alongside other major tenants.

The second asset is a newly constructed, last-mile distribution facility leased to a recession-resistant essential business that operates in the food and beverage segment, located in Sylva, NC. The 2024 build-to-suit property has a long-term net lease with multiple renewal options as well as has excess land available for tenant expansion if needed. The debt free industrial facility was purpose built for the high quality tenant as well as benefits from strong daily traffic counts of more than 20,000 vehicles.

"This portfolio includes two strategically positioned assets and underscores Cove Capital's focus on debt free, operationally efficient industrial investments aligned with tenant longevity and market demand. However, another important aspect of the Cove Essential Net Lease 89 portfolio is that it provides investors the possibility of using the 721 Exchange rollup as a fully optional exit strategy. This is a very important component for any DST investment as other sponsor companies have what is called a "forced 721 UPREIT". This full optionality benefit allows investors to participate in the 721 UPREIT if they choose to do so, but at their full discretion as opposed to being forced into the 721 exchange. This full optionality is a key differentiator in today's marketplace of DST and 721 UPREIT vehicles." said Chay Lapin, Managing Member and Founder of Cove Capital Investments.

"Another key attribute is that this offering, for those investors that ultimately choose to participate in a future potential 721 exchange, also has a 20 year Tax Protection Agreement (TPA).  This TPA is again a key differentiator in the 721 UPREIT DST market in that many DST 721 offerings do not provide investors with a TPA at all or those that do may only provide a 2-5 year TPA.  This 20 year TPA is a significant benefit for investors knowing that if the REIT ends up selling the contributed DST asset, without completing an internal 1031 exchange, that they will not be stuck with a tax bill as the REIT is agreeing to pay their Federal and State capital gains taxes," said Kay.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.5 million square feet of real estate in 33 states nationwide. Over 2,000 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.

*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.

SOURCE Cove Capital Investments