Cove Essential Net Lease Industrial 87 DST
Industrial property in Sierra Vista, AZ · sponsored by Cove Capital Investments
Cove Essential Net Lease Industrial 87 DST was a DST sponsored by Cove Capital Investments that owned an industrial property in Sierra Vista, AZ (26,795 SF). Its last Form D was filed May 22, 2025.
How it ended
No outcome recorded · under 7 years
The record lists the offering as fully subscribed; the last Form D was filed May 22, 2025.
Cove Capital Investments has 18 active offerings on record →
Key facts
- Minimum investment
- $1,000From the Form D
- Offering size
- $5,883,299Equity offered, per the Form D
- Sold
- 95.3%Form D, May 22, 2025; the % is our arithmetic
- Investors reported
- Form D, May 22, 202528
- Selling commissions
- Form D Item 15; the % is our arithmetic$352,998 · 6.0% of offering
- Financing
- All cash. This offering reports no mortgage debt.How it is financed ↓
- Offered under
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →
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Ask a 1031 specialist about this recordFree. About: Cove Essential Net Lease Industrial 87 DST. Top1031 is not a broker-dealer.Cove Essential Net Lease Industrial 87 DST · Sierra Vista, AZ · Photo: covecapitalinvestments.com
What did the Trust own?
Cove Capital Investments announced on May 20, 2025 that it had completed the all-cash acquisition that established this Trust. 4 The sponsor describes a single-tenant net-lease distribution facility leased to FedEx Ground. 3 Trade coverage the following day placed the site in the corridor linking Tucson, Phoenix and El Paso; the sponsor's announcement puts it less than 1,000 feet from US-90. 4 No public filing or sponsor page located states a street address.
- Reported location
- Sierra Vista, AZ
- Property size
- 26,795 SF
How was it financed, and what did it cost to sell?
The Trust owns the building outright with no mortgage, so there is no lender, no loan maturity and no refinancing to arrange. 3 The trade-off for exchangers: this Trust passes through no replacement debt, so anyone who must match a mortgage on a relinquished property has to source it elsewhere.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
Costs and terms from the Form D
- Selling commissions
- $352,998 · 6.0% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $627,177 · 10.6% of offeringForm D Item 16· The filing’s note: “Mr. Kay & Lapin will receive a portion of this amount (in)directly, for various fees and selling commissions, EXCLUDING amounts received for sales in the state of OR. OR proceeds will be received by registered representatives licensed in the state of OR.”
- Broker-dealers named in the Form D
- 1 named in the Form D
Show the firms
- FNEX Capital, LLC · CRD 166316
Individual representatives named in Item 12 are not listed.
- Date of first sale
- Not in the Form D
- Minimum investment
- $1,000
Form D Item 15 and Item 16 amounts may be the issuer’s estimates; each percentage is Top1031’s arithmetic on two Form D figures. Item 16 can overlap Item 15, so Top1031 does not add them together. The issuer marked these amounts as an estimate.
Who's behind the Trust?
Cove Capital Investments, co-founded by Dwight Kay and Chay Lapin, sponsors DSTs it buys without mortgage debt. 4 A company press release dated July 17, 2026 reported more than $1.13 billion in sponsored transactions across 137 properties, roughly 4.29 million square feet in 36 states, and about $206.3 million returned to investors. A third-party review dated July 14, 2026 examined the debt-free model and described the firm's track record as unverified.
- Sponsor
- Offerings on record
What does the SEC record show?
The original notice listed $58,832,299 offered and no sales. 1 The single amendment cut the stated total to roughly a tenth of that and reported the first subscriptions, with no filing on record explaining the change. 2 Interests may be advertised publicly but sold only to verified accredited investors — those meeting SEC income or net-worth tests. 2
- Legal Trust name
- Essential Net Lease Industrial 87 DST
- SEC CIK
- 2056772
- First Form D
- Feb 14, 2025
- Latest Form D
- May 22, 2025
- Filings on record
- 2
- Offered under
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
- Source filing
SEC Form D filings, newest first
| Filed | Form | Offering amount | Amount sold | Investors | Filing on SEC EDGAR |
|---|---|---|---|---|---|
| Form D/A | $5,883,299was $58,832,299 | $5,609,520+$5,609,520 | 28 | EDGAR | |
| Form D | $58,832,299 | $0 | EDGAR |
Amounts, investor counts and minimums are as filed with the SEC on Form D. The change lines are Top1031’s arithmetic between consecutive filings; a new Form D notice starts a new count.
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Common questions
- What happened to Cove Essential Net Lease Industrial 87 DST?
- Cove Essential Net Lease Industrial 87 DST is a Historical offering. The record lists the offering as fully subscribed; the last Form D was filed May 22, 2025.
- What does "debt-free" mean for my 1031 exchange?
- The Trust holds the property with no mortgage, so there is no loan to mature, refinance or default on, and no lender consent needed to sell. It also means the Trust passes through no replacement debt. If your relinquished property carried a mortgage you need to match to avoid boot, a debt-free DST does not supply it, and your tax adviser should confirm how that affects your exchange.
- Who is the tenant, and what happens if it leaves?
- FedEx Ground is the sole tenant of the Sierra Vista, Arizona building; the sponsor's May 20, 2025 acquisition release described the facility as 100% occupied. Cove states FedEx Ground signed an early lease extension, but no located source gives the commencement date, the expiration or the rent. With one tenant, all rent depends on that lease; because there is no mortgage, a vacancy would not trigger a lender default, but it would interrupt rent while the Trust carried taxes, insurance and upkeep. The offering documents contain the lease abstract and risk factors.
- Why do the two SEC filings show different offering amounts?
- The initial Form D filed February 14, 2025 reported $58,832,299 offered with no sales; the amendment filed May 22, 2025 reported a total offering amount roughly one-tenth that size along with the first sales figures. No filing explains the change, so both are presented as filed. The offering documents and subscription documents govern the actual size of the Offering.
- What is the minimum investment?
- Two source-dated numbers exist and they do not agree. Cove's offering page listed a $100,000 minimum when checked on August 19, 2026, while the Form D/A filed May 22, 2025 reported a $1,000 minimum — a figure many DST sponsors state on the SEC form regardless of the practical subscription minimum. Neither has been reconciled in a public document; the sponsor or the selling broker-dealer can state which applies.
- Could this Trust end in a REIT rollup?
- The record here flags no planned 721/UPREIT conversion — that is, contributing property interests to a REIT's operating partnership in exchange for units — and the sponsor's stated model is a property sale with proceeds distributed so investors can take cash or roll into another exchange. The offering documents and trust agreement set out the exit mechanics, any UPREIT election and the trustee's authority to sell.
In the news
Sources
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DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current offering documents before investing.