Cove Capital Investments, LLC Acquires Another Small Bay Industrial Property for Its Dallas MSA Small Bay Industrial 91 DST Offering
Continuing to grow its debt-free portfolio of Delaware Statutory Trust properties, Cove Capital Investments, LLC (“Cove Capital”) announced it has acquired another small bay industrial asset for its Cove Dallas MSA Small Bay Industrial 91 DST offering.
LOS ANGELES, July 16, 2025 /PRNewswire/ — Cove Capital Investments Founding Partners, Dwight Kay and Chay Lapin, announced the Delaware Statutory Trust sponsor firm successfully completed the purchase of a new highly sought after Small Bay Industrial asset in the Dallas, TX area. The purchase completes the formation of the firm’s Cove Dallas MSA Small Bay Industrial 91 DST, a Regulation D, Rule 506(c) offering that has a $6,097,142 equity raise.
The Cove Dallas MSA Small Bay Industrial 91 DST features a recently constructed Small Bay Industrial asset in the income tax free state of Texas.
“This 100% occupied debt-free small bay industrial asset has several potentially beneficial elements to it including that it was purchased with 0% debt as a purposeful strategy to mitigate potential risks associated with lender foreclosure, and the asset is 100% leased with rents that are currently below market, creating the potential for upside value creation as leases roll,” said Kay.
In addition, Kay explained that like many of Cove Capital’s offerings, the firm’s principals are investing their own dollars into the property creating an alignment of interest between the sponsor and investors in the offering.
“This asset is located in the high growth Dallas submarket of Wylie, TX just off FM 554 South of N State Highway 78. It has a historic occupancy of 100% with a consistent wait list of tenants to lease space at the property,” said Kay.
Small bay industrial properties are distinguished by their smaller suite footprints and ability to accommodate a large variety of diverse tenants. With smaller, more flexible layout and suite sizes, the small bay industrial asset helps them to accommodate a broad swath of users that can range from small businesses, contractors, artisans and even last mile e-commerce distribution nodes.
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 fully optional potential exit strategy.
“Another important aspect of the Cove Dallas MSA Small Bay Industrial 91 DST 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 UPREIT DST investment”, said Lapin.
About Cove Capital Investments
Cove Capital Investments is a Delaware Statutory Trust sponsor company that operates a portfolio of over 3 million square feet of real estate in 35 states nationwide. Over 2,164 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.
*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.
