Cove Capital Investments Acquires a Corporate Backed Net Lease Asset in Hollywood, FL as Part of Its Cove Debt Free Opportunity 72 Delaware Statutory Trust

Cove Capital Investments Acquires a Corporate Backed Net Lease Asset in Hollywood, FL as Part of Its Cove Debt Free Opportunity 72 Delaware Statutory Trust

March 05, 2024

This article was originally provided by Cove Capital.

Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company, announced it has completed the purchase of a corporate backed net lease asset in Hollywood, FL. The purchase is the firm's Florida Net Lease 72 DST, a Regulation D, Rule 506(c) offering that is targeted to raise $14,189,563.


According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the property was purchased by Cove Capital as part of its growing portfolio of debt-free Delaware Statutory Trust real estate assets for 1031 exchange and direct cash investors.

"We are excited to add another corporate backed net lease asset to our Cove portfolio. The Florida Net Lease 72 DST has a brand new 20-year net lease with annual rent increases and has a full corporate guaranty on the lease. Our tenant has numerous locations nationally and globally with plans to continue the expansion of their business model. We felt confident our investors would be attracted to the type of asset, location, the tenant, and the overall business strategy set forth in the Private Placement Memorandum," said Kay. In addition, the property is located in the state of Florida which is first, an income tax free state and second, considered by many to be very business friendly. "We felt confident in the tenant, location and debt free nature of the offering," said Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments. Like many of Cove Capital's real estate acquisitions, the Florida Net Lease 72 DST was acquired with 0% leverage for those investors who want to potentially mitigate risk by investing in a debt-free DST offering with no risk of lender foreclosure or lender cash flow sweeps. "Our Cove Acquisitions Team recognized the significance of adding this property to our Cove portfolio. Not only is the property located near a main thoroughfare with a daily traffic flow of over 18,000 vehicles per day, but there is also approximately $1.5 Billion in development planned, under construction or recently completed in Hollywood, FL making the location of this offering uniquely strategic to our tenant," said Lapin.