This latest DST offering highlights a unique diversified* portfolio covering multiple geographic regions, asset classes, and tenant companies with the potential for significant income for investors via ACH Direct Deposit*.
LOS ANGELES, Sept. 16, 2025 /PRNewswire/ — 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 completed the acquisition of a diversified* portfolio located in Norton, VA and Lexington, KY. The latest acquisition will establish the Cove Diversified Portfolio 94 DST, a Regulation D, Rule 506(c) offering that aims to raise $15,566,573 in equity.
The first asset within the portfolio consists of a net lease industrial facility for an established essential business tenant, and features 7 loading docks and abundant yard space for the potential to further expand the facility with additional square footage in the future.
“This Norton, VA distribution center was custom built in 2024 for the current tenant and based on market survey reports, we believe was acquired at below current market prices. In addition, the building is strategically located in Southwest Virginia, providing easy access to markets in the Appalachian region and beyond,” said Dwight Kay, Managing Member and Co-Founder of Cove Capital Investments.
The second asset within the portfolio includes a 46,647 square foot multi-tenant retail center located in Lexington, KY. The center has a current occupancy rate of 97% and derives 84% of its income from multiple national tenants.
“This multi-tenant retail center has an average combined daily traffic count of more than 50,000 vehicles and is located in the second largest city in Kentucky with a population of 771,000 residents. We also acquired the asset with a staggered lease schedule providing the opportunity for negotiating renewals and raising rents to market as leases expire,” said Kay.
According to Kay, the Cove Diversified Portfolio 94 DST also provides investors the unique opportunity to invest in both an “Anchor” and “Buoy” asset within a single DST portfolio.
Kay explained that Anchor investments provide investors the potential for a more fixed income stream with a lower degree of variability in performance. Conversely, a “Buoy” investment has the potential to more efficiently increase rental rates and adjust occupancy or tenant mix which can be both a value-add opportunity and potential buffer for inflation.
“This portfolio has multiple interesting aspects to it including that it combines a brand new tenant net lease distribution facility located along strategic transportation routes and occupied by an essential business tenant that is a best in-class operator within the global distribution industry. In addition, the Cove Diversified Portfolio 94 DST also includes a multi-tenant retail center occupied by multiple national retailers with upside potential for mark to market rent adjustments,” said Kay.
Kay also explained that the Cove Diversified Portfolio 94 DST is a fully debt-free offering that was created with the purposeful investment strategy of mitigating common risks associated with real estate debt, such as mortgage foreclosure, cash flow sweep clauses, and go-dark provisions. Finally, as consistent with most Cove Capital offerings, the firm’s principals will be personally investing in this opportunity alongside its investors—demonstrating a shared commitment and aligned interest.
In addition, Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments also emphasized that this offering has the potential for a 721 Exchange rollup as a potential exit strategy.
“Another important aspect of the Cove Diversified Portfolio 94 is that it provides investors the possibility of using the 721 Exchange rollup as a fully optional exit strategy. Instead of signing up today in a forced 721 UPREIT DST, our investors are going to be given the option to participate in a future potential 721 UPREIT or not – at their discretion. This means that at the time of any potential future 721 UPREIT transaction, our investors will be able to analyze the final destination REIT by examining key areas such as: REIT debt levels, dividend coverage ratios, the use of floating rate debt, does the REIT offer 721 investors a Tax Protection Agreement (TPA), if so how long is it for? And other key components investors must consider prior to participating in a 721 exchange”, said Lapin.
About Cove Capital Investments
Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3.3 million square feet of real estate in 35 states 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 [email protected].
*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.
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