The brand new Chipotle restaurant retail building is the latest addition to the Cove Capital Net Lease Income Fund 18 that continues to acquire and actively manage a portfolio of unleveraged, single corporate tenant, long-term net lease income-producing industrial, medical, and retail assets throughout the United States
LOS ANGELES, Jan. 18, 2023 /PRNewswire/ — Cove Capital Investments, LLC, a private equity real estate firm and DST sponsor company announced it has completed the acquisition of a Chipotle net lease restaurant retail asset in Wichita, KS. The building is located on a 30,927 square foot pad surrounded by 350,405 square feet of retail space located in the Westway Plaza, a large regional shopping center in Wichita, KS that sees more than 46,000 vehicles per day.
According to Chay Lapin, Managing Member and Co-Founder of Cove Capital Investments, the net lease asset was acquired as an all-cash transaction to be included in Cove’s Net Lease Income Fund 18, LLC, a Reg D, Rule 506C offering. The fund seeks to raise $50 million from accredited investors with a minimum investment of $50,000.
“We were excited to include this acquisition as part of our Net Lease Income Fund 18, LLC for a number of reasons. First, the property is secured by a long-term net lease that is corporately guaranteed by Chipotle Grill Inc, a publicly traded firm that generated $7.5 billion in revenue in 2021. In addition, the building was constructed in 2021 as one of Chipotle’s latest prototype drive-thru restaurant retail designs,” said Lapin.
Dwight Kay, Managing Member and Co-Founder of Cove Capital reiterated that Cove Capital continues to be one of the only 1031 exchange DST investment real estate sponsor firms in the nation that specializes in debt free real estate investment options for 1031 exchange and direct cash investors.
“The vast majority of investment real estate offerings are leveraged – especially in the DST space and broker/dealer community. Cove Capital uses a contrarian approach that emphasizes offerings that are completely debt-free. We believe this strategy is an attractive option for those investors seeking to potentially mitigate risk by avoiding leverage and long-term mortgages encumbering the properties. More and more, broker/dealers, registered representatives, and RIA’s are attracted to debt-free real estate investments, and we feel our growing portfolio of debt-free properties like the recent Chipotle will continue to appeal to investors who don’t want to take on the extra layer of risk that financing provides,” said Kay.
About Cove Capital Investments
Cove Capital Investments is a private equity real estate firm and DST sponsor company providing accredited investors access to 1031 exchange eligible Delaware Statutory Trust properties as well as other real estate investment offerings. The Cove Capital team consists of Acquisitions, Asset Management, Accounting, Due Diligence, In-House Counsel, Investor Relations, Marketing and Capital Markets. Cove Capital maintains a robust current inventory of DST and private equity real estate offerings potentially available to investors. The principals of Cove Capital have sponsored the syndication of over 1.5 million square feet of properties in the multifamily, net lease, industrial and office sectors. They also endeavor to invest alongside clients in each of their offerings.
* Diversification does not guarantee profits or protect against losses. * Past performance is not a guarantee of future results. This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior to investing. This correspondence contains information that has been obtained from sources believed to be reliable. However, Cove Capital Investments, LLC does not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Limited Liability Company owned (LLC) properties, LLC interests, Delaware Statutory Trust (DST) properties, and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and net lease properties, short term leases associated with net lease properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances. Nothing contained in this material, including in this disclosure or in any other disclosure in this message, constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA, SIPC.
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SOURCE Cove Capital Investments