Texas Small Bay Industrial Portfolio 86 DST
Industrial property in Katy and Richmond, TX · sponsored by Cove Capital Investments
Texas Small Bay Industrial Portfolio 86 DST was a DST sponsored by Cove Capital Investments that owned an industrial property in Katy and Richmond, TX. Its last Form D was filed Mar 11, 2025.
How it ended
No outcome recorded · under 7 years
The record lists the offering as fully subscribed; the last Form D was filed Mar 11, 2025.
Cove Capital Investments has 18 active offerings on record →
Key facts
- Minimum investment
- $1,000From the Form D
- Offering size
- $14,773,456Equity offered, per the Form D
- Sold
- Not reported after the first Form D (Mar 11, 2025)Form D, Mar 11, 2025
- Selling commissions
- Form D Item 15; the % is our arithmetic$886,407 · 5.9% 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 →
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Ask a 1031 specialist about this recordFree. About: Texas Small Bay Industrial Portfolio 86 DST. Top1031 is not a broker-dealer.Texas Small Bay Industrial Portfolio 86 DST · TX · Photo: mma.prnewswire.com
What did the Trust own?
Cove Capital reported completing both acquisitions to finalize the Trust's formation, announcing the portfolio on May 6, 2025. 2 Morton Business Park in Katy was built in 2023, while the Richmond buildings were newly constructed at the time of purchase. 2 The sponsor reported both properties 100% leased to multi-tenant small bay flex industrial users when acquired. 2
- Property address
- Morton Business Park, TX
- Property size
- Two properties, five buildings totaling over 69,000 SF (Katy: 3 buildings, ~29,165 SF; Richmond: 2 buildings, ~40,000 SF on 2.52 acres)
How was it financed, and what did it cost to sell?
There is no mortgage here. Cove described the purchase as a 100% debt-free transaction, so the Trust has no lender, no loan covenants and no refinancing date to work around. 2 An all-cash structure also offers nothing to an exchanger who must replace debt carried on a relinquished property.
Debt
- Financing
- All cash. This offering reports no mortgage debt.
Costs and terms from the Form D
- Selling commissions
- $886,407 · 5.9% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $1,589,112 · 10.7% of offeringForm D Item 16· The filing’s note: “Mr Kay & Lapin will receive a portion of this amount (in)directly for various fees & 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
- Not in the Form D
- 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 the sponsor and promoter named in the Trust's Form D, which also lists Dwight Kay and Chay Lapin as executive officers and managing members. 3 The firm is a frequent filer of 1031-exchange DSTs, and when it announced this two-property Houston-area portfolio on May 6, 2025 it emphasized both the debt-free structure and the absence of a Texas state income tax. 2
- Sponsor
- Offerings on record
What does the SEC record show?
No amendment follows the original Form D, so the SEC record stops at the Trust's formation and never reports how the raise finished. 3 The offering was made under Rule 506(c), which lets a sponsor advertise publicly but requires it to verify that every investor is accredited rather than accept a self-certification.
- Legal Trust name
- Texas Small Bay Industrial Portfolio 86 DST
- SEC CIK
- 2059791
- First Form D
- Mar 11, 2025
- Latest Form D
- Mar 11, 2025
- 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 | Filing on SEC EDGAR |
|---|---|---|---|---|
| Form D | $14,773,456 | $0 | 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 Texas Small Bay Industrial Portfolio 86 DST?
- Texas Small Bay Industrial Portfolio 86 DST is a Historical offering. The record lists the offering as fully subscribed; the last Form D was filed Mar 11, 2025.
- What exactly does the Trust own?
- Two small bay flex industrial properties in the greater Houston metropolitan area: Morton Business Park in Katy, Texas, built in 2023 and consisting of three buildings, and a two-building, newly constructed property in Richmond, Texas. Cove Capital reported both properties 100% leased to multi-tenant small bay flex industrial users at acquisition, announced May 6, 2025.
- Who are the tenants?
- Individual tenant names were not established in the public filings, press releases or sponsor materials reviewed. Both properties are multi-tenant, so income comes from a roster of smaller users rather than one corporate credit. Cove's website references national brands such as Walmart, Starbucks, McDonald's and Kroger, but the page expressly states those businesses are not part of this offering. The offering documents are where the actual rent roll and lease expirations appear.
- What does a debt-free DST mean for a 1031 exchange?
- The Trust holds its real estate without a mortgage, so there is no lender that could foreclose and no loan maturity forcing a sale or refinancing. The flip side: if your relinquished property carried debt, an all-cash DST supplies no replacement debt, and an exchanger who needs to replace mortgage boot generally has to solve that elsewhere. Discuss the mechanics with your qualified intermediary and tax adviser.
- What is the minimum investment?
- The figures differ by document. Cove Capital's offering page lists a $25,000 minimum, while the Form D filed with the SEC on March 11, 2025 reports a $1,000 minimum outside investment. Form D minimums and marketed minimums often diverge; the offering documents and subscription agreement control.
- Could this Trust convert into a REIT?
- Nothing in the reviewed record indicates a 721/UPREIT exit — the structure in which a DST's property is later contributed to a REIT's operating partnership in exchange for OP units. This Trust is recorded as having no such conversion feature, meaning the anticipated path is an eventual sale of the real estate rather than a roll-up into a REIT.
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.