New Mexico distribution center
Single-tenant net lease industrial distribution property in Tularosa, NM — sponsored by Cove Capital Investments
Files with the SEC as Essential Net Lease Industrial 106 DST
Minimum investment
$1k
Offering size
$5.5M
How much has sold
39.0%
Asset type
Single-tenant net lease industrial distribution property
Location
Tularosa, NM
Financing
All cash. This offering reports no mortgage debt.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
Essential Net Lease Industrial 106 DST is a Delaware statutory trust — a passive co-ownership vehicle whose interests can serve as replacement property in a 1031 exchange — sponsored by Cove Capital Investments. It owns a single-tenant industrial distribution center in New Mexico, bought without mortgage debt in a transaction the sponsor announced as complete in a release dated February 19, 2026.2 The Trust is raising.
$5.51M equity target; debt-free; 100% occupied; new 10-yr lease; 2025 build-to-suit; optional 721 exit
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These links support the public record as a whole; individual details may come from different sources.
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What exactly is the property?
The distribution center was completed in 2025 and built specifically for the tenant that occupies it, with additional square footage left for future expansion.2 Cove Capital announced the purchase as complete in a release dated February 19, 2026.2 Neither the Form D nor that release gives a city or street address, and no reviewed public record establishes one; the site is identified in the PPM, the private placement memorandum.
- Reported location
- Tularosa, NM
Who is the tenant, and what's the lease?
Cove Capital describes the facility as 100% occupied by an unnamed supply-chain operator under a newly signed 10-year lease.2 It is a net lease, meaning the tenant carries stated property-level operating costs — the lease and the PPM define exactly which ones.
How are sales going?
These are the sponsor’s own numbers. They can lag what has actually sold, and they do not confirm that interests are still available.
39.0% reported sold
- Amount sold
- $2,138,881
- Still available
- $3,366,837
- Investors reported
- 5
- Total offering
- $5,505,718
Not enough filings yet to show a trend.
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How is it financed, and what does it pay?
With no mortgage on the property, there is no lender, no loan maturity, and no refinancing to negotiate at the Trust level. The trade-off is that there is no Trust-level debt for an exchanger who must replace mortgage debt carried on a relinquished property.
- Financing
- All cash. This offering reports no mortgage debt.
Who's behind it?
Cove Capital Investments is the sponsor named in the Trust's Form D, and it builds debt-free DST offerings for 1031 exchange investors.1 In a June 17, 2026 milestone release the firm said its portfolio spanned more than 132 properties and $1.083 billion in transactions. Connect Money reported on February 20, 2026 that the platform then oversaw more than 3.5 million square feet across 126 properties nationwide.
- Sponsor
- Cove Capital Investments
- Legal Trust name
- Essential Net Lease Industrial 106 DST
- May convert to a REIT
- Yes
- 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 single filing on record is a first notice rather than an amendment, and it reports a first sale on December 15, 2025.1 Under the exemption shown below the Trust may be advertised publicly, but each buyer's accredited status — income or net worth above SEC thresholds — must be verified rather than self-certified.1
- Form D filedFirst and latest filing on record.
- Filings on record
- 1
- 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
Is New Mexico distribution center still raising money?
Top1031 lists New Mexico distribution center as active because the sponsor is still filing with the SEC. That does not confirm that interests remain available.
Where does Top1031 get the data for New Mexico distribution center?
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.
Where exactly is the property?
No street address or city appears in any reviewed public document. The January 7, 2026 Form D lists no property address, and Cove Capital's February 19, 2026 acquisition release identifies only New Mexico. One trade publication has named a specific town, but that report is not corroborated by the SEC filing or the sponsor's release, so Top1031 records the location only as New Mexico. The exact site is settled in the PPM.
Who is the tenant?
Cove Capital's February 19, 2026 acquisition release describes the property as 100% occupied by a supply-chain operator on a newly signed 10-year lease, but does not name the company. No SEC filing for this Trust names it either. The tenant's legal name, the lease commencement and expiration dates, and the rent are found in the PPM and the lease itself.
Is this Trust still open to new investors?
It is shown as raising based on its January 7, 2026 Form D, the only filing on record. That notice is a dated snapshot rather than a live balance — the sales figures on this page reflect what the issuer reported on that date. The sponsor or its selling broker-dealers can confirm what remains available today.
What does a debt-free DST mean for my exchange?
It means the Trust bought the property with equity alone — no mortgage. There is no loan to mature, no lender covenant, and no refinancing risk at the property level. It also means there is no Trust-level debt for an exchanger who must replace mortgage debt from a relinquished property, which affects how much equity you need to place to defer fully.
What is the 721 exit feature the sponsor mentions?
A 721 exchange, sometimes called an UPREIT, lets DST investors contribute their interest to a REIT's operating partnership for partnership units instead of selling for cash. Cove Capital's February 19, 2026 release says this offering includes a fully optional 721 Exchange exit, and no source reports that such a transaction has occurred. Whether and when a sponsor can execute one, and what happens to your tax deferral afterward, are PPM questions.
What is the minimum investment?
The January 7, 2026 Form D reports a $1,000 minimum for the smallest investment accepted from an outside investor. Sponsors commonly set higher practical minimums for 1031 exchange and cash subscriptions in the offering documents, so the PPM's subscription section is the controlling number.
Chapter 9Cove Capital Investments, LLC Completes the Acquisition of a Single Tenant Net Lease Industrial Distribution Facility in New Mexico for Its Cove Essential Net Lease Industrial 106 DST in a 100% Debt-Free TransactionCove Capital acquired a brand-new industrial distribution center in New Mexico, 100% occupied by a best-in-class supply-chain operator; offering also features a fully optional 721 UPREIT exit.