Strong investor capital raise in 2023 helped propel Cove Capital Investments into one of the top 10 Delaware Statutory Trust sponsor firms in the nation1.
LOS ANGELES, Jan. 30, 2024 — Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company that specializes in debt free DST offerings for 1031 exchange investment, announced it achieved several milestones in 2023 across various aspects of its business model.
Expanded Capital Raising Results
Among the major milestones in 2023 was Cove Capital’s growth in capital raising results and an increased number of accredited investors participating in its DST and real estate fund offerings. By the end-of-the year, Cove Capital had successfully closed $164 million of equity capital from accredited 1031 exchange and direct cash investors. The firm’s capital raising accomplishments not only makes the past 12 months one of the most successful fundraising years in its history, but it also helped propel Cove Capital into the top 10 list of DST sponsor companies, out of approximately 55 DST sponsors, in terms of equity raised for 2023. 1. This landmark year helped solidify Cove as one of the top Delaware Statutory Trust sponsor firms in the nation based on equity raised. 1.
“Cove Capital’s consistent increases in equity raised and over 2.1 million square feet of real estate under management is clear evidence that our approach toward providing investors access to quality debt free DSTs and funds, with a focus on removing the risks of leverage and the potential for income and growth is resonating in the marketplace. In light of the fact that past performance does not guarantee future results, that all real estate investments (including DSTs) may go down in value as well as that distributions and appreciation are never guaranteed and could be lower than anticipated, we at Cove Capital believe that lowering our investors’ risk potential by staying debt free is a necessary and prudent strategy for many clients. Clearly our investors and the many Broker Dealers, RIAs and Registered Representatives that are part of our selling group, feel the same as well,” said Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments.
Emphasis on Debt-Free DST and Fund Offerings
Since inception, Cove Capital has taken a unique approach to sponsoring DST offerings and real estate investing in that it believes today’s current macro-economic picture does not appear to be the opportune time for investors to be pushing for potentially increased returns with the use of leverage. By providing debt free DST and real estate offerings Cove Capital believes it has removed a significant portion of risk for investors while still allowing them to complete a 1031 exchange as well as to potentially achieve meaningful current income.
Emphasizing its debt free investment philosophy throughout the past 12 months, Cove Capital has successfully continued to sponsor and manage a robust portfolio comprising of over 2.1 million square feet of real estate spread across 32 states nationwide. Over the recent years, the firm successfully completed six debt-free DST offerings and one fund offering into profitable full-cycle liquidity events across multiple asset classes that included single tenant net lease, multifamily, data center, retail and industrial*. Perhaps even more significant is the fact that Cove Capital’s debt free platform continues to gain traction among accredited investors, RIA’s, Registered Representatives, and Broker Dealers, and has grown its investor base to include over 1,600 high net-worth accredited investors who look to Cove Capital for their 1031 exchanges and direct cash investment dollars.
*Past performance does not guarantee future results.
“Cove Capital has assembled a portfolio of over 2.1 million square feet of properties as we well as a fully integrated, world-class real estate investment team that includes acquisitions, asset management, property management, finance, accounting, analysis, in-house counsel, investor relations and capital markets. In addition, Cove Capital continues to introduce improvements to our investor relations efforts like our new investor online portal product that allows investors to efficiently oversee and monitor their Cove Capital investments and establishing a direct communication channel with the Cove Capital investor Relations department—all consolidated within one centralized location,” said Chay Lapin, Managing Member and Founding Partner with Cove Capital Investments.
Looking ahead into 2024 and beyond, both Kay and Lapin emphasized that Cove Capital will continue to focus on potentially reducing risk for its investors and selling group members by focusing on debt free DST and fund offerings, which do not have the risk of lender foreclosure.
“By eliminating one of the most significant risks in real estate—lender foreclosure and borrowing pressure—Cove Capital believes it has contributed to a potentially lower risk DST investment environment for our investors. We feel blessed to have come so far as a company with a distinct market position and ranking in the top 10 of DST sponsors1., and we could not have accomplished so much in such a short time without the help and support of our many investors and members of our selling group including Broker dealers, Registered Representatives, and RIAs from across the country. Thank you for your continued support and collaboration,” concluded Kay.
About Cove Capital Investments
Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 2.1 million square feet of real estate in 32 states nationwide. Over 1,600 investors have trusted Cove Capital with their 1031 exchange and investment dollars, many of them being repeat investors in multiple Cove offerings over the years. Our offerings are attractive to those investors seeking to lower risk potential as the majority of Cove Capitals 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.
*Past performance is not indicative 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. 1.Mountain Dell Consulting, 1031 DST/TIC Market Equity Update, 12/31/2023
SOURCE Cove Capital Investments
