Cove Capital’s $16.5M Georgia Industrial Park DST Fully Subscribed

Cove Capital fully Subscribes $16.5M Georgia Industrial Park DST

Los Angeles-based Cove Capital Investments,LLC announced the full subscription of its $16.5 Million General Time Industrial Park Chance 84 Delaware Statutory Trust (DST) offering. The industrial park,located in athens,Georgia,is fully leased to a subsidiary of a national beer and beverage company,along with a national e-commerce operator,both under long-term leases.

The property, nestled within the 35-acre General Time mixed-use progress, was acquired below replacement cost, according to Cove Executives. This debt-free DST offering aligns with Cove’s investment strategy focusing on all-cash real estate assets, especially attractive for 1031 exchange and direct cash investors.

Strategic Investment in athens Industrial Sector

The General Time Industrial Park’s location in Athens offers strategic advantages. Athens,home to the university of Georgia,benefits from a steady influx of talent and a growing economy. The industrial sector, in particular, has seen increased demand due to its proximity to major transportation routes and a business-amiable surroundings.

Recent data from the Bureau of Labor Statistics indicates that Georgia’s warehousing and storage sector has grown by approximately 6% over the past year, reflecting the increasing demand for industrial spaces (BLS Data).

Optional 721 Exchange roll-Up Feature

Chay Lapin,Co-Founder and Managing Member at Cove Capital,emphasized the optional 721 Exchange roll-up feature of this investment. “This is a very important component for any DST investment, as other sponsor companies have what is called a ‘forced 721 UPREIT’.This full optionality benefit allows investors to participate in the 721 UPREIT if they choose to do so and at their discretion,” Lapin explained.

Lapin added, “This full optionality is a key differentiator in today’s marketplace of DST and 721 UPREIT vehicles.”

Cove Capital’s Recent Successes

the General Time Industrial DST marks the latest in a series of fully subscribed offerings by Cove capital Investments. Recent successes include:

• The $9.1 Million northpark Shopping Center Opportunity 78 DST.
• The $18.7 Million Cove San Antonio Multifamily 74 DST.
• The $5.8 Million Essential Net Lease Industrial 87 DST in the Southwest distribution corridor.

Cove capital Investments currently manages a diversified DST portfolio spanning more than 2.5 Million Square Feet across 33 states.

Debt-Free DST Offerings: An Overview

Debt-free DST offerings have become increasingly popular among investors seeking stable and predictable income streams. These offerings, structured as Delaware Statutory Trusts, allow investors to pool their resources to acquire larger properties without incurring debt. Here’s a brief overview:

Feature	Description
Debt-Free	Properties are acquired without any mortgage debt, reducing financial risk.
1031 Exchange	Offers tax deferral benefits for investors utilizing 1031 exchanges.
Diversification	Enables investors to diversify their real estate portfolios across various asset classes and geographies.

Pro Tip: Before investing in DSTs, consult with a qualified financial advisor to ensure it aligns with your investment goals and risk tolerance.

Market Trends in Industrial Real Estate

Industrial real estate continues to be a favored asset class, driven by the growth of e-commerce and the need for efficient supply chains. According to a report by CBRE, industrial vacancy rates remain low, indicating strong demand and potential for rental income growth (CBRE Industrial Outlook).

The Southeast region, including Georgia, is experiencing meaningful industrial development due to its strategic location and access to major ports and transportation networks.

Benefits of DST Investments

Delaware Statutory Trusts (DSTs) offer a unique investment structure that appeals to a wide range of investors, particularly those looking to diversify their real estate holdings. Here’s a closer look at the benefits:

• Passive Income: DSTs provide a steady stream of passive income, generated from rental payments of the underlying properties.
• Diversification: Investors can diversify their portfolios by investing in various property types and locations through DSTs.
• Tax Benefits: DSTs are often used in 1031 exchanges,allowing investors to defer capital gains taxes.
• Professional Management: The properties within a DST are professionally managed, reducing the burden on individual investors.

Frequently Asked Questions (FAQ)

• What is a Delaware Statutory Trust (DST)? A Delaware Statutory Trust (DST) is a legal entity created as a trust under Delaware law, frequently enough used to hold title to real estate for the benefit of investors.
• How does a 1031 exchange work with a DST? A 1031 exchange allows investors to defer capital gains taxes by reinvesting the proceeds from the sale of a property into a “like-kind” property, such as an interest in a DST.
• What are the benefits of investing in industrial real estate through a DST? investing in industrial real estate through a DST offers benefits such as passive income, diversification, and potential tax advantages.
• What is a 721 UPREIT? A 721 UPREIT is a transaction that allows investors to exchange their property for operating partnership units in a Real Estate Investment Trust (REIT), offering potential tax benefits.
• What factors should I consider before investing in a DST offering? Before investing in a DST offering, consider factors such as the property’s location, tenant quality, lease terms, and the sponsor’s experience and track record.

What are your thoughts on debt-free DST offerings? Do you think industrial parks are a solid investment in the current market? Share your comments below!

Given the information provided,was the $16.5M Georgia Industrial Park DST oversubscribed, and if so, by how much?

Cove Capital’s $16.5M Georgia Industrial park DST Fully Subscribed: A Look at the Investment and Market

Cove Capital Investments recently announced the prosperous subscription of its $16.5 million Georgia Industrial Park Delaware Statutory Trust (DST).This meaningful achievement underscores the continued attractiveness of industrial real estate investment and the growing popularity of DSTs among accredited investors. We’ll delve into the specifics of this offering, the benefits of DSTs, and the broader implications for those seeking passive income through real estate investments.

Understanding the Georgia Industrial Park DST

The georgia Industrial Park DST represents a professionally managed investment vehicle comprising commercial real estate. The specific details of the underlying industrial property are critical. This offering allowed investors to pool their capital and acquire partial ownership in a stabilized, income-producing industrial property located in Georgia. This allows for the diversification in the real estate market and a more accessible investment option compared to purchasing an entire industrial asset outright. Understanding the specific location, tenant mix, and lease terms is a key part of due diligence for any potential investor.

DST Structure: A Simplified Approach

A Delaware Statutory Trust (DST) is a legal structure used to hold real estate. It allows investors to own a fractional interest in a property,typically for tax-advantaged purposes. Key characteristics include:

• Passive Investing: Investors have no management responsibilities.
• 1031 Exchange Eligibility: Offers a potential for tax deferral via a 1031 exchange
• Professional Management: Properties are managed by experienced real estate professionals.
• Diversification: Investors can spread their risks across multiple properties.

Benefits of Investing in Industrial Real Estate through DSTs

the appeal of investing in industrial parks, such as the Cove Capital offering, stems from several key advantages. The industrial property market has seen significant growth, amplified by the e-commerce boom, which has fueled demand for warehouse and logistics spaces, creating the potential for stable returns.

Key Benefits:

• Potential for Stable Income: Leases with creditworthy tenants provide a consistent revenue stream.
• Reduced Management Burden: Professional property management handles day-to-day operations.
• Diversification: DSTs allow investors to diversify their portfolios with commercial real estate.
• Tax Advantages: Potential for tax benefits, including depreciation. Consult with a tax advisor.

The Market Landscape: Why Georgia Industrial Parks Matter

The selection of Georgia for this DST offering could be attributed to the state’s strong industrial market fundamentals. Factors driving this include strategic locations,such as proximity to key transport hubs (rail,ports,major highways),a strong labor market for industrial roles,and favorable tax environments.

Why Georgia?

• Strategic Location: Access to major transportation routes.
• Growing economy: A favorable business environment drives demand. This growth and a strong national economy both contribute to high levels of industrial real estate investment.
• E-commerce Growth: increasing demand for distribution and logistics capacity

Market Analysis Example

Here’s a simplified snapshot of a hypothetical market and a few comparisons within a hypothetical range, using data for illustrative purposes only. Note, actual data may vary considerably. Consult with a financial professional before making any investment decisions.

Metric	Georgia Industrial Park (Hypothetical)	Average National Industrial
Vacancy Rate	2-3%	4-5%
Average Lease Rate (per sq ft)	$6 – $8	$5 – $7
Cap Rate	5.5 – 6.5%	5 – 7%

disclaimer: The hypothetical data above is only for illustrative purposes and should not be considered a guarantee of performance. Real estate investments carry inherent risk, including fluctuations in property values and varying market conditions.

Due Diligence and Investor Considerations in DST Investments

Before investing in a DST like Cove Capital’s Georgia Industrial Park, investors must conduct thorough self-reliant research. Always research the sponsor. Engage with qualified financial professionals who can properly assess DST suitability.

Key Considerations:

• sponsor’s Experience: evaluate the sponsor’s track record and expertise
• Property Analysis: Scrutinize the property’s location, tenant base, and lease terms.
• Market Analysis: Understand the current real estate market dynamics.
• Risk Factors: Consider the inherent risks associated with industrial property and the DST structure.
• Tax Implications: Always consult with a tax professional regarding potential tax implications.

Investing in a DST presents an attractive route for investors seeking passive income and to diversify a portfolio in commercial real estate. Cove Capital’s successful Georgia Industrial Park DST closing is a demonstration of the popularity of this investment vehicle and the demand for industrial real estate. Further thorough research, including market analysis, DST review, and consultation with financial and legal professionals, is crucial. This allows each investor to make an informed decision.