Cove Essential Net Lease Industrial 87 DST
Industrial (single-tenant net lease, FedEx Ground) property in Sierra Vista, AZ — sponsored by Cove Capital Investments
Files with the SEC as Essential Net Lease Industrial 87 DST
Minimum investment
$1k
Offering size
$5.9M
How much has sold
95.0%
Asset type
Industrial (single-tenant net lease, FedEx Ground) property
Location
Sierra Vista, AZ
Financing
All cash. This offering reports no mortgage debt.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
Cove Essential Net Lease Industrial 87 DST is a Delaware statutory trust — a structure that lets 1031 exchangers hold fractional interests in real estate — owning a single-tenant distribution building in Sierra Vista, Arizona, leased to FedEx Ground.3 Cove Capital Investments announced the 100% debt-free acquisition on May 20, 2025.4 The sponsor's offering page labeled the Offering fully subscribed as of August 19, 2026.3
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These links support the historical public record; individual details may come from different sources.
On a 45-day clock? Find day 45 and day 180 from the sale date, then come back to this record.
What exactly is the property?
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
Who is the tenant, and what's the lease?
FedEx Ground occupies the building under a net lease, meaning the tenant carries property-level operating costs a landlord would otherwise bear.3 The May 20, 2025 acquisition release reported the facility 100% occupied.4 Cove states that FedEx Ground signed an early lease extension, without giving a date, a new expiration or the rent.3
How did it end?
No sale or other ending on record
We have not found a public record of how this offering ended. That is not the same as knowing it still operates.
Debt-free (0% LTV); $5,883,299 equity target; min $100k; tenant FedEx Ground (FDX); <1,000 ft from US-90
26,795 SFHow is it financed, and what does it pay?
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.
- Financing
- All cash. This offering reports no mortgage debt.
- Loan-to-value
- 0%covecapitalinvestments.com
Who's behind it?
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
- Cove Capital Investments
- Legal Trust name
- Essential Net Lease Industrial 87 DST
- May convert to a REIT
- No
- Offerings from this sponsor
- 24 active / 57 total offerings from Cove Capital Investments
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
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
- First Form D filedThe public offering record begins.
- Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
- Filings on record
- 2
- How it may be offered
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
- Source filing
- Read the filings on SEC EDGAR
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.
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 Private Placement Memorandum before investing.
Common questions
What happened to Cove Essential Net Lease Industrial 87 DST?
Top1031 lists Cove Essential Net Lease Industrial 87 DST as historical. It is no longer raising money.
Where does Top1031 get the data for Cove Essential Net Lease Industrial 87 DST?
Top1031 builds this record from the sponsor’s own SEC filings and cited sponsor disclosures. Filings can lag what is happening now. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Can I still invest in this Trust?
Trade coverage dated July 3, 2025 reported the Offering fully subscribed, and Cove's own offering page still labeled it fully subscribed as of August 19, 2026. The most recent Form D amendment on record, filed May 22, 2025, is a dated snapshot that still showed an unsold balance, and the sales figures shown on this page come from that filing. Anything available now would be sponsor-held or secondary-market interests, which only the sponsor or a selling broker-dealer can confirm.
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 PPM — the private placement memorandum that governs the offering — contains 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 PPM 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 PPM and trust agreement set out the exit mechanics, any UPREIT election and the trustee's authority to sell.
Chapter 9Cove Capital Launches $27.6M Five State, Five-Asset DST OfferingNotes Cove Capital 'fully subscribes' the $5.8M Essential Net Lease Industrial 87 DST in the Southwest distribution corridor while announcing a new five-state, five-asset offering. Cove Capital Fully Subscribes $18.68M Multifamily DST OfferingNames the Cove Essential Net Lease Industrial 87 DST in Sierra Vista among the firm's portfolio of debt-free DSTs while announcing the fully-subscribed San Antonio Multifamily 74 offering. Cove Capital Expands Debt-Free Portfolio with Distribution Center AcquisitionReports Cove Capital acquired a distribution center connecting Tucson, Phoenix and El Paso for the Cove Essential Net Lease Industrial 87 DST targeting over $5.8M in equity, debt-free. Dwight Kay and Chay Lapin, Co-Founders of Cove Capital Investments, LLC Announce the DST Sponsor Firm Has Acquired a Essential Net Lease Industrial Facility in a 100% Debt-Free Transaction for Its New Cove Essential Net Lease Industrial 87 DST OfferingCove Capital announces acquisition of the Sierra Vista AZ FedEx Ground distribution facility for its new Cove Essential Net Lease Industrial 87 DST, a 506(c) offering targeting $5,883,299 in equity.