Cove Capital Investments Enhances Portfolio with New Last-Mile Industrial Distribution Assets

Cove Capital Investments Successfully Acquires Two Key Last-Mile Distribution Properties

Cove Capital Investments, LLC, recognized as a premier sponsor of Delaware Statutory Trusts, has made a significant move by completing the acquisition of a two-property portfolio known as the Essential Net Lease 89. This recent transaction, executed in a fully debt-free manner, showcases Cove Capital's dedication to providing accredited investors with premium real estate opportunities.

Strategic Locations for Enhanced Distribution

Located in Joplin, Missouri, and Sylva, North Carolina, the new assets encompass a total of 68,967 square feet, strategically situated to fulfill last-mile distribution needs. As highlighted by Dwight Kay, the Managing Member and Founder of Cove Capital, these properties are positioned near major transportation arteries, enhancing their suitability for efficient supply chain operations. The first building is a tailored last-mile distribution center for a well-known home improvement chain, complete with 63,000 square feet of space and featuring 20 high dock doors. This facility not only serves critical Midwest markets but also sits within an established industrial corridor alongside other major tenants, maximizing its operational potential.

The second property caters to the resilient food and beverage sector, boasting a long-term lease with multiple renewal options. This newly constructed facility has been purpose-built to serve an essential business and is expected to see regular high daily traffic, exceeding 20,000 vehicles. Additionally, there is additional land for future expansion, allowing it to adapt and grow as needed.

Investment Security through Strategic Planning

One of the compelling aspects of the Cove Essential Net Lease Portfolio 89 is the clear investment security it offers. All tenants are high-quality and the properties are fully leased, ensuring stable revenue streams. Additionally, Cove Capital makes it a priority to mitigate common investment risks associated with real estate debt, eliminating concerns like mortgage foreclosures. This careful planning contributes to a robust investment strategy and aligns with the company's goal of ensuring long-term success for its investors.

Cove's commitment to its clients is further demonstrated through its practice of having the firm's principals personally invest alongside other investors, reinforcing the alignment of interests and shared commitment toward achieving mutual success.

Optional 721 Exchange and Tax Protection Agreements

A noteworthy advantage of the Essential Net Lease 89 offering is its provision for a 721 Exchange rollup as a fully optional exit strategy, allowing investors to participate in the 721 UPREIT at their discretion. This flexibility is crucial, as many other Delaware Statutory Trust companies compel investors into a