Cove Florida Net Lease 72 DST
Net lease property in Hollywood, FL · sponsored by Cove Capital Investments
Cove Florida Net Lease 72 DST was a DST sponsored by Cove Capital Investments that owned a net lease property in Hollywood, FL. Its last Form D was filed Jan 9, 2024.
How it ended
No outcome recorded · under 7 years
The record lists the offering as fully subscribed; the last Form D was filed Jan 9, 2024.
Cove Capital Investments has 18 active offerings on record →
Key facts
- Minimum investment
- $1,000From the Form D
- Offering size
- $14,189,563Equity offered, per the Form D
- Sold
- 1.5%Form D, Jan 9, 2024; the % is our arithmetic
- Investors reported
- Form D, Jan 9, 20242
- Selling commissions
- Form D Item 15; the % is our arithmetic$851,374 · 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 →
Using this record to judge the sponsor? A licensed 1031 specialist from our affiliated partner can talk it through with you.
Ask a 1031 specialist about this recordFree. About: Cove Florida Net Lease 72 DST. Top1031 is not a broker-dealer.What did Cove Florida Net Lease 72 DST own?
The Trust owns a single-tenant net lease property at 2230 Hollywood Blvd in Hollywood, Florida, inside the Miami metro area. 2 Cove Capital announced on March 5, 2024 that it had completed the purchase as part of this offering. 3 The sponsor describes the building as renovated in 2023 and states that $3.8 million of improvements were underway, without dating that status. 2 Square footage and the exact closing date are not in the public record.
- Reported location
- Hollywood, FL
Tenant and lease terms are not in the SEC filings or cited sources.
How was it financed, and what did it cost to sell?
This Trust was capitalized without mortgage debt, so there is no lender, no loan maturity to refinance and no risk of a lender foreclosing on the asset; investors also forgo the amplification that borrowing can provide. 3
Debt
- Financing
- All cash. This offering reports no mortgage debt.
Costs and terms from the Form D
- Selling commissions
- $851,374 · 6.0% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $1,613,471 · 11.3% 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
- Jan 8, 2024
- 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 Cove Florida Net Lease 72 DST?
Cove Capital Investments, LLC is the sponsor and promoter of the Trust, and builds its 1031 program around debt-free, all-cash offerings. 1 The Form D names Dwight Kay and Chay Lapin as executive officers, with Dwight Kay signing as manager of the signatory trustee and of the issuer. 1 The firm has sponsored a broad series of numbered net lease trusts, of which this Hollywood, Florida asset is one.
- Sponsor
- Offerings on record
What does the SEC record show?
The record here is short: a single Form D notice with no amendments since. 1 The issuer reported a first sale date of January 8, 2024 and sold interests under Rule 506(c), which permits public advertising but limits purchasers to accredited investors whose status the sponsor must verify. 1
- Legal Trust name
- Florida Net Lease 72 DST
- SEC CIK
- 2006926
- First Form D
- Jan 9, 2024
- Latest Form D
- Jan 9, 2024
- Filings on record
- 1
- 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 | $14,189,563 | $215,172 | 2 | 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 Florida Net Lease 72 DST?
- Cove Florida Net Lease 72 DST is a Historical offering. The record lists the offering as fully subscribed; the last Form D was filed Jan 9, 2024.
- What is the minimum investment?
- The sources disagree. The Form D filed January 9, 2024 reported a minimum outside investment of $1,000, while Cove Capital's property page states a $25,000 minimum. The governing figure is whatever the offering documents state.
- Who actually pays the property expenses?
- Under the 20-year triple-net lease that Cove Capital describes, the tenant is responsible for taxes, insurance and maintenance rather than the Trust. Guidepost Montessori is the operating tenant, and its parent, Higher Ground Education, provides a full corporate guaranty of the lease obligations.
- Does this Trust have any mortgage debt?
- No. Cove Capital reported that the Hollywood, Florida asset was acquired with zero leverage. For a 1031 exchanger, a debt-free trust means there is no trust-level debt to replace; exchangers who carried a mortgage on their relinquished property should discuss with their tax adviser how a debt-free replacement affects their exchange math.
- Can this Trust convert into a REIT through a 721 exchange?
- The record shows no 721/UPREIT feature — that is, no stated path for investors to roll their beneficial interests into operating-partnership units of a REIT. The exit contemplated is a sale of the property, and the terms governing any sale are set out in the offering documents.
- What is not known about this property?
- Public sources reviewed did not establish the building's square footage, an explicit occupancy figure, the exact acquisition closing date, the lease's rent escalation terms, or whether the $3.8 million of improvements the sponsor described have been completed. No sale, refinancing, foreclosure or tenant bankruptcy has been reported for this Trust.
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.