Cove Capital Investments, LLC Completes the Acquisition of a Single Tenant Net Lease Industrial Distribution Facility in New Mexico for Its Cove Essential Net Lease Industrial 106 DST in a 100% Debt-Free Transaction

The Cove Essential Net Lease Industrial 106 DST features a brand-new distribution center in New Mexico, 100% occupied by a best-in-class supply chain operator. This offering also includes the strategic advantage of a fully optional 721 Exchange exit, providing investors with future flexibility without obligation.

LOS ANGELES–(BUSINESS WIRE)–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 established the Cove Essential Net Lease Industrial 106 DST, a Regulation D, Rule 506(c) offering that is targeting $5,505,718 in equity. The newly acquired facility is a strategically located industrial distribution center in New Mexico.

According to Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, this latest acquisition highlights several important features that make single tenant net lease industrial buildings attractive as a Delaware Statutory Trust asset class.

The Cove Industrial Net Lease Industrial 106 DST consists of a distribution facility that was built specifically for the tenant in 2025. This asset is a highly functioning building designed for supply chain distribution services with additional square footage to expand in the future.

“For DST investors, the Cove Essential Net Lease Industrial 106 DST offers several very specific potential benefits, including brand new 2025 build-to-suit construction, located along a strategic highway corridor, which offers tremendous value to not only logistics firms, but also manufacturing, government, and defense industries. In addition, the asset is 100% occupied by a supply chain leader, which has shown a strong commitment to the asset as evidenced with a newly signed 10-year lease,” said Kay.

According to Chay Lapin, Managing Member and Co-Founder, Cove Capital Investments, believes in providing investors with debt-free DST offerings. This deliberate, zero-leverage offering strategy is a core component of Cove Capital’s investment thesis, designed to mitigate risks inherent in leveraged real estate and DSTs. In addition, the firm’s principals co-invest their own capital into each offering, creating a direct alignment between the sponsor firm and investors.

“Our zero-leverage DST offering model is foundational to potentially protecting investor capital, a major theme emphasized at Cove Capital. By removing offering 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. Additionally, we invest alongside our clients in each DST offering.”

While many sponsors are incorporating mandatory (aka forced) UPREIT roll-ups into their DST offerings, Cove Capital takes a fundamentally different approach. The Cove Essential Net Lease Industrial 106 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 if a potential roll-up arises, our investors have the right to conduct thorough due diligence on the destination REIT—evaluating its debt levels, dividend coverage, and tax protections—and then decide if it’s the right move for them. This discretion is a core part of our philosophy to empower, not obligate, our investors.”

About Cove Capital Investments

Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3.5 million square feet across its 126 asset real estate portfolio nationwide. Over 2,300 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 info@covecapitalinvestments.com.

*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.

Contacts

Vincent Aviani, Communications Director
Phone: (424) 436-3526
Email: vincent.aviani@kpi1031.com