Cove Capital Investments, LLC Expands Its National Footprint Following the Launch of Its Five Asset $27.6 Million Cove Diversified Portfolio 88 DST Investment for 1031 Exchange Investors

The Cove Diversified Portfolio 88 DST is a 100% debt-free portfolio of assets that features five locations covering multiple geographic regions, asset classes, and tenant companies.

LOS ANGELES, July 1, 2025 /PRNewswire/ -- Dwight Kay and Chay Lapin, Cove Capital Investments Founding Members, announced the Delaware Statutory Trust sponsor firm has successfully launched its Cove Diversified Portfolio 88 DST, a $27,689,229 Delaware Statutory Trust (DST) Regulation D, Rule 506c offering that includes five quality DST commercial properties spanning across five strategic U.S. markets.

The unlevered (all-cash) DST portfolio investment includes a five state, five asset portfolio comprised of approximately 211,000 square feet of industrial distribution, essential net lease, and multi-tenant retail assets. Each respective asset within this portfolio is located in a strategic location.

"The Cove Diversified Portfolio 88 DST was formed for the purpose of acquiring a diversified portfolio located in strategic markets in a all-cash structure providing 1031 exchange investors with a turn key solution," said Kay. "The portfolio's net lease and logistics/distribution assets provides the potential for predictable income, while its multi-tenant retail asset positions investors to potentially capitalize on value-add upside potential and a diversified tenant base. Our focus remains on potentially delivering a durable income stream and risk-adjusted returns for our 1031 exchange investors navigating today's market all while doing so in a debt free portfolio with no risk of lender foreclosure," said Kay.

Founding Member Chay Lapin also explained that like many of Cove Capital's offerings, the firm's principals will be investing their own capital into the portfolio creating an alignment of interest between the sponsor and investors in the offering.

"Cove Capital doesn't just sponsor DST offerings. As principals we invest alongside our investors. We have personally committed capital to this portfolio so our investors should understand there is an alignment of interests," said Lapin.

According to Lapin, another compelling aspect of the Cove Diversified Portfolio 88 DST is that it has the potential for a 721 Exchange rollup as a potential exit strategy.

"It's important for investors to understand that the Cove Diversified Portfolio 88 DST offers the potential for a completely voluntary 721 Exchange rollup as an exit pathway," said Lapin. "In other words, investors will retain the freedom to opt into a future 721 UPREIT transaction—or decline—based entirely on their individual preferences. If such an opportunity arises, investors will be able to thoroughly assess the prospective REIT, including critical factors like its leverage ratio, dividend payout sustainability, exposure to variable interest rate debt, and whether a Tax Protection Agreement (TPA) is available—and for what duration. At Cove Capital, we are strong advocates for investor choice and flexibility, rather than mandating participation in a 721 exchange," said Lapin.

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3 million square feet of real estate in 35 states nationwide.  Over 2,164 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