Cove Capital Investments Announces Successful Return for Investors in Full Cycle Debt Free Statutory Delaware Trust Offer
Cove Capital Investments announced that a DST offering has gone through a full cycle to show positive returns for Cove Capital clients as the Delaware Statutory Trust offering in Tacoma, WA sold for $ 9.8 million.
LOS ANGELES, Nov. 15, 2021 (GLOBE NEWSWIRE) – Cove Capital Investments, a nationally recognized DST real estate sponsor, has announced that it has successfully set up one of its debt-free DST investments for the account from a group of accredited investors.
“Full cycle” is the term used to describe a Delaware statutory trust property that is bought and then sold on behalf of a group of accredited investors after a period of time.
According to Dwight Kay, co-founder of Cove Capital Investments, the property, Tacoma Data Center DST, sold for $ 9,800,000 on behalf of a group of DST-accredited investors.
âWe are proud to have provided our clients with this successful DST investment opportunity which resulted in a profitable, full cycle program. While past performance does not guarantee or indicate the likelihood of future results, and all real estate investments could result in a total loss of capital, this particular DST investment is an example of how Cove Capital Investments goes out of its way to provide investments that potentially have a lower risk profile due to the fact that they are often debt free, mortgage free, and potentially resistant to pandemics and recessions, âKay said.
As a result, investors in this DST offering received uninterrupted monthly distributions throughout the holding period and throughout the COVID-19 pandemic. This was a factor that many of the investors involved in the offering were incredibly grateful for and a reason many of them reinvested with Cove Capital in a subsequent 1031 exchange.
âThe monthly distributions to investors were not interrupted as the investment distributions functioned exactly according to the business plan of the Private Placement Memorandum (PPM). We have been able to provide our investors with a full cycle liquidity event and profitable sell while maintaining the low risk profile of a fully cash / debt free DST investment with no long term mortgage on the asset. It is important to note that distributions and cash flow are never guaranteed in any real estate investment, and we always encourage every investor to read the PPM offer for a full discussion of the business plan and risk factors of. each Delaware Statutory Trust before investing, which includes the fact that real estate values ââcan go up and down. Investors should understand that there is always a possibility of losing all of their invested capital when participating in a real estate offering, âKay said.
According to Cove Capital Investments co-founder Chay Lapin, the Cove Debt Free Tacoma DST data center was acquired in December 2018 for a total cost of the DST offering of $ 8,398,000.
âWhen we acquired the Tacoma Data Center DST in 2019, it was 100% leased and occupied by a Fortune 500 company that provides life-saving dialysis treatments to its patients. It was a mission critical data center that housed the data center operations for all of the company’s operations on the West Coast. The three-story, 18,733-square-foot building was located in the Greater Seattle-Tacoma area, a constantly growing data center market and an income-tax-exempt state. This is a fine example of a DST real estate offering managed in accordance with our business plan and our investors were very satisfied with the results *. Of course, in the future, we hope that all of our offerings will perform as well or even better than this particular DST, but we always encourage all Cove Capital investors to read the PPM of each offer paying close attention to the factors of risk before considering an investment. Having purchased and managed millions of square feet of real estate investment as a sponsor of DST, myself, my business partner and Cove Capital co-founder, Dwight Kay, and the entire Cove Capital team are very focused on providing a comprehensive overview and discussion of all risk factors for each of our investors. We have personally participated in over $ 25 billion in DST offerings and investors should be aware of all risk factors before investing, as well as the various strategies and options available to them to help potentially mitigate risk factors, âRabbit said.
Following the successful sale of Cove’s debt-free DST data center, many of the original Delaware Statutory Trust investors reinvested in other debt-free DST investments offered by Cove, and Cove’s founding directors were able to Refer a number of clients to other DST sponsors companies they have worked closely with during many years of immersion in the DST investment industry. In recent years, DSTs have become a popular choice for exchangers looking to reinvest sales proceeds into multi-family, industrial, net leased, medical, and self-storage properties that can potentially provide a steady income stream without property management responsibilities.
âCove Capital Investments LLC creates 1,031 DST stock market investments and real estate private equity offerings for accredited investors. Many of these offers are attractive to investors looking to mitigate risk with debt-free offers with no long-term mortgages on properties, which is an investment approach contrary to most other DST investments in the market. . Cove Capital seeks to provide investors with debt-free and leveraged DST investment options as well as direct cash investment opportunities. To date, Cove Capital has sponsored or co-sponsored the syndication of over 1.3 million square feet of DST properties and other real estate assets in the multi-family, net lease, industrial and office sectors. Over 75% of our original Cove Tacoma datacenter DST investors have reinvested in other Cove debt-free DSTs, âsaid Karen Brown, Investor Relations Associate at Cove Capital Investments.
To view Cove Capital 1031 DST’s current replacement properties and / or direct cash investment opportunities, please visit www.covecapitalinvestments.com or call 877-899-1315 for more information.
* Past performance does not guarantee or indicate the likelihood of future results.
* No representation is made that a DST investment will or is likely to generate profits or losses similar to those made in the past or that losses will not be incurred on future offers.
Diversification does not guarantee profits and does not protect against losses. All real estate investments do not provide any guarantee of cash flow, distributions or appreciation and could result in a total loss of invested capital. Please read the entire Private Placement Memorandum (PPM) before making an investment. This case study may not be representative of the outcome of past or future offers. Please consult your lawyer and CPA before considering an investment.
There are significant risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate titles, including illiquidity, tenant vacancies, general market conditions and competition, the lack of operating history, interest rate risks, risk of new offer entering the market and relaxation of rental rates, general risks associated with owning / operating properties commercial and multi-family, short-term leases associated with multi-family properties, financing risks, potential negative tax consequences, general economic risks, development risks and long holding periods. All offers discussed are Settlement Offers D, Rule 506c. There is a risk of losing all of the invested capital. Past performance is no guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. In order for an investor to be eligible for any type of investment, there are both financial and suitability requirements that must match specific objectives, goals and risk tolerances. Securities offered by Growth Capital Services, FINRA member, SIPC Office of Supervisory Jurisdiction located at 2093 Philadelphia Pike, Suite 4196, Claymont, DE 19703.