#United States #Los Angeles #Cove Capital #1031 Exchange #DST Offering

Cove Capital Investments Unveils Debt-Free DST Offering

Cove Capital Investments, LLC has recently announced the launch of its innovative debt-free offering, the Cove Diversified Portfolio 94 DST. This new portfolio is specifically designed for accredited investors seeking effective options for their 1031 exchanges and direct cash investments. The announcement was made on September 16, 2025, and has stirred interest among potential investors with its promise of a diversified investment opportunity across multiple asset classes.

A Strategic Acquisition

The Cove Diversified Portfolio 94 features strategic assets located in Norton, Virginia, and Lexington, Kentucky. This unique combination not only underscores Cove's commitment to providing debt-free investment options but also ensures a varied income stream through quality tenants and prime locations.

One of the standout assets in the portfolio is a custom-built industrial facility situated in Norton, VA. This property, constructed in 2024, is leased to a reputable essential business tenant and includes features such as seven loading docks and ample yard space. These characteristics allow for future expansion, a vital feature in today's evolving market.

Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments, mentioned, "Our recent acquisition in Norton is strategically located, providing excellent access to markets across the Appalachian region. We believe we acquired this facility below current market prices, offering a significant upside potential for our investors."

Diverse Retail Investment

Complementing the industrial asset is a 46,647-square-foot multi-tenant retail center in Lexington, KY. This retail property boasts an impressive occupancy rate of 97% and generates 84% of its income from well-known national tenants. Kay emphasized the center's strategic location in Kentucky's second-largest city, with over 771,000 residents and daily traffic counts exceeding 50,000 vehicles. "This fruitful traffic presents unique opportunities for further negotiations and potential increases in rental rates as leases come up for renewal," said Kay.

Navigating Investment Strategy

The Cove Diversified Portfolio 94 provides a unique investment structure, allowing investors to choose between 'Anchor' and 'Buoy' investments within the same DST setting. The so-called Anchor investments are geared towards offering stable income streams with less variability in performance, while the Buoy investments provide opportunities for more dynamic growth through potential rent increases and adjustments in tenant mix. This dual approach allows investors to tailor their risk exposure and return expectations according to their individual preferences.

Kay further explains, "This portfolio presents a variety of benefits, from a top-tier distribution facility to a thriving multi-tenant retail center. Our focus remains on essential businesses, with the intent of providing security and potential growth for our investors."

Debt-Free Assurance

One of the major selling points of the Cove Diversified Portfolio 94 is its completely debt-free structure. This strategic choice eliminates risks commonly associated with real estate debt, such as mortgage foreclosures and obliges cash flow sweeps. By opting for a debt-free model, Cove Capital Investments reassures its investors of consistent cash flows and reduced risk exposure.

In line with their offerings, Cove’s principals will make personal investments in this new portfolio. This measure demonstrates their commitment to aligning interests with those of their investors, a strategy that has earned Cove significant trust over the years.

Future Opportunities

Chay Lapin, another key partner at Cove Capital, highlighted the potential for a 721 Exchange rollup as a possible exit strategy for investors. "Our investors will have the flexibility to choose whether or not to participate in a future 721 UPREIT transaction, allowing them to analyze vital aspects like REIT debt levels and dividend coverage before making a decision," he stated.

About Cove Capital Investments

Cove Capital Investments has established itself as a prominent Delaware Statutory Trust sponsor company, managing a vast portfolio representing over 3.3 million square feet of real estate across 35 states. With more than 2,300 investors relying on Cove for their 1031 exchange needs, the company prides itself on offering attractive, lower-risk investment opportunities predominantly through debt-free structures. Investors seeking to explore the Cove Capital offerings or learn more can visit covecapitalinvestments.com.

In summary, the Cove Diversified Portfolio 94 DST sets a new standard in real estate investment, eschewing debt in favor of strategic growth, investor confidence, and diversified opportunities across key markets.