Cove Capital Investments Acquires an All-Cash / Debt-Free Retail Center

Cove Capital purchased a debt-free retail center in Birmingham, AL, for its Eastwood Village Opportunity 71 DST, aiming to raise $22.8 million.

February 21, 2024

This article was originally provided by Cove Capital.

The Delaware Statutory Trust offering is a multi-tenant retail center in Birmingham, AL.


Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company announced it has completed the acquisition of an all-cash / debt-free multi-tenant retail center in Birmingham, AL. Cove's Eastwood Village Opportunity 71 DST is a Regulation D, Rule 506(c) offering that is targeting to raise $22,798,024 in equity from accredited investors with a minimum investment requirement of $25,000.


According to Dwight Kay, Managing Member and Founding Partner of Cove Capital Investments, the center was purchased by Cove Capital to contribute to its growing portfolio of debt-free real estate assets for 1031 exchange, 1033 exchange and direct cash investors. The retail center is shadow-anchored by a high performing Walmart Supercenter (not a part of the subject offering). Additional anchor tenants include Ross Dress for Less, Five Below, Office Depot, Michaels, Party City, Hibbett Sports, America's Best, T-Mobile & Starbucks. Eastwood Village is the #1 retail center in the market with many of the tenants ranking within the top percentile within their respective chains as top performers.

"We are thrilled to announce the addition of another all-cash/debt-free DST offering to our portfolio. We would especially like to thank all of the members of the Cove selling group over the years which includes Broker/Dealers, Registered Representatives and RIAs for their support and trust in Cove Capital. The Cove portfolio is now over 1.9 million square feet and continues to rapidly expand," said Kay. The property was purchased by Cove Capital with 0% leverage (a debt free DST), 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. Oftentimes, investors ask "Are DSTs risky?" and the answer is yes, all real estate contains risk however when you are invested in a debt free Delaware Statutory Trust you completely eliminate the risk of a lender foreclosure.


Chay Lapin, Managing Member and Founding Partner of Cove Capital Investments explained, "The purchase of Cove Eastwood Village is a value-add strategy in an effort to potentially increase net operating income and property value/investor equity. What makes this property particularly appealing for our DST offering is that it is the #1 Retail Center in the market seeing an estimated 3.4M visits per year. The property is neighbor to multiple national tenants and is seeing street traffic of a combined 78,000 vehicles per day. The retail center's strategic location in Birmingham, AL, is in close proximity to the University of Alabama Birmingham, hosting over 21,600 full-time students (2022 Fall Enrollment).


The location stands as a densely populated center in Birmingham, AL, with a population of 116,944 within a 5-mile radius of the property," explained Lapin. Lapin highlighted that this offering boasts a 96% occupancy rate, with recent tenant lease extensions and renewals indicating a strong tenant commitment to the location. Interested accredited investors are encouraged to visit www.covecapitalinvestments.com to register for a copy of the Private Placement Memorandum which goes into full detail on the business plan and risk factors of investing in this Delaware Statutory Trust offering.