Cove Net Lease Distribution 55 DST
Net lease property in Gunnison, CO · sponsored by Cove Capital Investments
Cove Net Lease Distribution 55 DST was a DST sponsored by Cove Capital Investments that owned a net lease property in Gunnison, CO (38,073 sq ft). Its last Form D, filed Jan 17, 2024, reports the offering fully sold.
How it ended
No outcome recorded · under 7 years
The last Form D, filed Jan 17, 2024, reports the offering fully sold.
Cove Capital Investments has 18 active offerings on record →
Key facts
- Minimum investment
- $1,000From the Form D
- Offering size
- $24,163,472Equity offered, per the Form D
- Sold
- 100%Form D, Jan 17, 2024; the % is our arithmetic
- Investors reported
- Form D, Jan 17, 2024111
- Selling commissions
- Form D Item 15; the % is our arithmetic$1,208,173 · 4.9% 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 Net Lease Distribution 55 DST. Top1031 is not a broker-dealer.Cove Net Lease Distribution 55 DST · Gunnison, CO · Photo: covecapitalinvestments.com
What did the Trust own?
The building is new construction inside Gunnison Rising, a master-planned development on the east side of Gunnison, Colorado, and is occupied by FedEx Ground. Cove Capital Investments announced on April 1, 2023 that it had completed the purchase of the facility in a debt-free transaction. 2 Trade press covered the acquisition when the Trust was launched in 2022. 3 No purchase price appears in the reviewed sources.
- Reported location
- Gunnison, CO
- Property size
- 38,073 sq ft
How was it financed, and what did it cost to sell?
Cove Capital bought the property outright, with no mortgage recorded against it in the reviewed sources. For an investor that means no lender, no loan maturity to refinance and no foreclosure exposure; it also means the Trust carries no debt for an exchanger who needs to replace mortgage debt from a sold property.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
Costs and terms from the Form D
- Selling commissions
- $1,208,173 · 4.9% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $2,071,309 · 8.5% 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
- Dec 30, 2022
- 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 is a DST sponsor that markets all-cash, debt-free net-lease trusts to 1031 exchange investors, and this Gunnison FedEx Ground purchase was covered as one of them. 3 The firm announced completion of the acquisition on April 1, 2023. 2 It also published a video walk-through of this offering. SEC filings name Cove Capital Investments, LLC as the sponsor and promoter. 1
- Sponsor
- Offerings on record
What does the SEC record show?
The first sale of interests occurred on December 30, 2022, with the initial Form D — the short notice an issuer files for a private placement — following days later and reporting a raise still in progress. 1 A single amendment a year later brought the reported figures current and showed the offering complete. 5
- Legal Trust name
- Cove Net Lease Distribution 55 DST
- SEC CIK
- 1947151
- First Form D
- Jan 6, 2023
- Latest Form D
- Jan 17, 2024
- 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 | $24,163,472 | $24,163,472+$13,950,095 | 111+91 | EDGAR | |
| Form D | $24,163,472 | $10,213,377 | 20 | 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 Net Lease Distribution 55 DST?
- Cove Net Lease Distribution 55 DST is a Historical offering. The last Form D, filed Jan 17, 2024, reports the offering fully sold.
- Who is the tenant, and what happens when the lease ends?
- FedEx Ground occupies the Gunnison, Colorado distribution center under a ten-year lease with two five-year renewal options that the tenant may or may not exercise. Because this is a single-tenant building, a decision not to renew would leave the Trust to re-tenant or sell the property. The reviewed materials do not state whether FedEx Corp guarantees the lease — that belongs in the offering documents.
- What does "debt-free" mean for my 1031 exchange?
- It means the Trust holds the property with no mortgage, so there is no loan to refinance and no lender that could foreclose. It also means an investor whose relinquished property carried a mortgage has no debt to match here; taxpayers in that position generally must contribute additional cash or address the difference with their own tax adviser.
- What was the minimum investment?
- The sponsor's offering page listed a $50,000 minimum for this Trust, while the Form D filings reported a $1,000 minimum accepted from any outside investor. Sponsors commonly set a higher practical minimum than the figure disclosed on Form D; the offering documents control.
- Can this Trust convert into a REIT through a 721/UPREIT exit?
- The record shows no REIT conversion feature — that is, no path for investors' interests to be rolled into a REIT's operating partnership in exchange for units (a 721 or UPREIT exit). The Trust is structured as a single-property, single-tenant net-lease holding.
In the news
Sources
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These links support the record as a whole; individual details may come from different sources.
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.