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.
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 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.”
