Cove Capital Investments Fully Subscribes Its Debt-Free Ponder Small Bay Industrial 101 Delaware Statutory Trust Offering

19-Building Multi-Tenant Industrial Park in High-Growth Dallas-Fort Worth Corridor Features Value-Add Potential, Below-Replacement-Cost Acquisition, and Fully Optional 721 Exchange Exit

LOS ANGELES, May 22, 2026 /PRNewswire/ -- Cove Capital Investments, LLC, a leading Delaware Statutory Trust sponsor company specializing in debt-free investment options for 1031 exchange and direct cash investors, announced its Cove Ponder Small Bay Industrial 101 DST, a Regulation D Rule 506(c) offering, is fully subscribed following successfully raising $18,695,430 in equity from investors.

According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, like the majority of Cove Capital's offerings, the Cove Ponder Small Bay Industrial 101 DST was structured as an all-cash, debt-free DST offering designed to provide accredited investors with a value-add industrial investment in one of the nation's most dynamic growth corridors.

"We are grateful to our investors and the members of our selling group, including Broker-Dealers, Registered Representatives, and RIAs, for their continued confidence in Cove Capital. The successful subscription of the Ponder Small Bay Industrial 101 DST further solidifies our position as a leading provider of debt-free DST offerings in the marketplace as does the fact that over 2,600 investors have now chosen to invest with Cove Capital," said Kay.

A Strategic Small Bay Industrial Asset in the Heart of Dallas-Fort Worth

The Cove Ponder Small Bay Industrial 101 DST consists of a 19-building, multi-tenant flex and small bay industrial park located in Ponder, Texas, just minutes from the Dallas-Fort Worth Metroplex. The property is 100% occupied with a diverse and well-established tenant base and offers immediate access to US Highway 380 and Interstate 35 West, placing it in close proximity to the Texas Motor Speedway, Alliance Airport, and multiple residential developments.

"This offering represented an attractive value-add opportunity for our investors. Our acquisition's team acquired the property at below replacement cost and identified several pathways for potential upside value-add creation, including capturing mark-to-market rents and converting gross leases to NNN structures. Small bay industrial assets are highly sought after for their ability to accommodate a broad range of tenants, from small businesses and contractors to retail and office users as well," said Kay.

Key Investment Highlights

Sponsor Co-Investment and Debt-Free Structure

Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments, emphasized that like many of the firm's offerings, Cove Capital principals have invested their own capital into the property, creating a direct alignment of interest between sponsor and investors.

"As principals of Cove Capital Investments, we believe that investing our own capital alongside our investors not only demonstrates our confidence in the offering, but also our commitment to aligning our interests directly parallel to our investors," said Lapin.

"Our debt-free DST offering philosophy continues to resonate with investors seeking the potential for capital preservation and income stability. By removing long-term debt from the equation, we eliminate refinancing exposure and interest rate sensitivity, allowing property operations to drive performance," added Lapin.

Fully Optional 721 Exchange Exit Strategy

According to Kay, the Cove Ponder Small Bay Industrial 101 DST also provided investors with a fully optional 721 Exchange exit strategy, a key differentiator in a market where forced UPREIT roll-ups are becoming increasingly common.

"We believe investors should retain control over their financial future. This offering provides full optionality—meaning investors have the discretion to participate in any future potential 721 UPREIT or not, entirely at their own choosing," said Kay.

Should a future UPREIT transaction be presented, investors will have the opportunity to conduct thorough due diligence on the destination REIT, evaluating key metrics including:

• REIT debt levels and leverage ratios
• Dividend coverage and sustainability
• Use of floating rate debt
• Presence and duration of Tax Protection Agreements (TPAs)

"This optionality ensures our investors are never forced into a 721 UPREIT. Instead, they can proceed with confidence, but only if the terms align with their specific situation and investment objectives," added Kay.

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