Cove Net Lease Distribution 56 DST
Industrial net lease property in Colby, KS · sponsored by Cove Capital Investments
Cove Net Lease Distribution 56 DST was a DST sponsored by Cove Capital Investments that owned an industrial net lease property in Colby, KS. Its last Form D was filed Sep 20, 2022.
How it ended
No outcome recorded · under 7 years
The record lists the offering as fully subscribed; the last Form D was filed Sep 20, 2022.
Cove Capital Investments has 18 active offerings on record →
Key facts
- Minimum investment
- $1,000From the Form D
- Offering size
- $14,977,099Equity offered, per the Form D
- Sold
- 12.8%Form D, Sep 20, 2022; the % is our arithmetic
- Investors reported
- Form D, Sep 20, 20229
- Selling commissions
- Form D Item 15; the % is our arithmetic$748,855 · 5.0% 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 Net Lease Distribution 56 DST. Top1031 is not a broker-dealer.What did the Trust own?
The Trust holds one asset: a single-tenant distribution building that Cove Capital marketed as a brand-new build-to-suit essential logistics facility. In its February 2023 announcement, the sponsor described the building as fully occupied by a Fortune 500 logistics tenant, without naming that tenant or giving a street address. 1 No verified street address for the property appears in the public record.
- Reported location
- Colby, KS
- Property size
- 39168
How was it financed, and what did it cost to sell?
Debt-free means exactly that: no mortgage, no lender, no loan maturity, and no refinancing or foreclosure risk at the property level. It also means an exchanger carrying mortgage debt on a relinquished property finds no trust-level debt here to replace it.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
Costs and terms from the Form D
- Selling commissions
- $748,855 · 5.0% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $1,312,435 · 8.7% of offeringForm D Item 16· The filing’s note: “Dwight Kay and Chay Lapin will receive a portion of this amount directly, or indirectly, for various fees and selling commissions.”
- 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
- Sep 2, 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, LLC is named as the sponsor and promoter in the Trust's Form D filings. 2 The firm is among the more prolific 1031 sponsors on record, with a long run of similarly numbered net-lease trusts marketed without mortgage debt. In February 2023 Cove Capital announced this offering fully subscribed with $15,050,260 of equity raised, a close also reported by AltsWire. 1
- Sponsor
- Offerings on record
What does the SEC record show?
The paperwork here is short: an original Form D and a single amendment filed one week later, which raised the reported sales figure. The Trust is offered under Rule 506(c), the exemption that permits public advertising but requires the sponsor to verify each investor's accredited status. No further amendment followed the sponsor's full-subscription announcement.
- Legal Trust name
- Cove Net Lease Distribution 56 DST
- SEC CIK
- 1945230
- First Form D
- Sep 13, 2022
- Latest Form D
- Sep 20, 2022
- 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 | $14,977,099 | $1,923,391+$1,534,850 | 9+6 | EDGAR | |
| Form D | $14,977,099 | $388,541 | 3 | 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 56 DST?
- Cove Net Lease Distribution 56 DST is a Historical offering. The record lists the offering as fully subscribed; the last Form D was filed Sep 20, 2022.
- Who occupies the building, and how long is the lease?
- Trust records identify FedEx Ground as the sole occupant under a new 10-year net lease with two five-year extension options. Cove Capital's own February 2023 press release described the occupant only as a Fortune 500 logistics tenant and did not name it, so the tenant identity comes from Top1031's record rather than a sponsor or SEC document.
- What does "debt-free" or all-cash mean for this Trust?
- There is no mortgage on the property and no lender in the capital stack. That removes loan maturity, refinancing, and lender-foreclosure risk. It also means an investor whose relinquished property carried mortgage debt gets no replacement debt through this Trust, which matters for the debt-replacement side of a 1031 exchange.
- Where exactly is the property?
- The public record places it in Colby, Kansas, and Cove Capital's announcement identified the city. Neither the sponsor release nor the SEC filings disclose a street address, and no verified address was found in research as of August 25, 2026.
- Why do the SEC numbers look so much smaller than the amount the sponsor says it raised?
- Form D reports are point-in-time snapshots, and this issuer stopped amending after September 20, 2022. Cove Capital later announced $15,050,260 of equity raised at full subscription in February 2023, a figure that never appeared in an updated filing.
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.