Cove Capital Investments Acquires Industrial Distribution Facility in a 100% Debt-Free Transaction for Its New Cove Essential Net Lease Industrial 116 DST Offering
Located in Paducah, Kentucky, the industrial distribution facility is 100% leased to a leading logistics company under a newly executed long-term lease extension.
LOS ANGELES, June 1, 2026 /PRNewswire/ — Cove Capital Investments, LLC, a Delaware Statutory Trust sponsor company that specializes in providing accredited investors access to debt-free options for their 1031 exchange, DST and direct cash investments, announced it has recently completed the acquisition of a mission-critical distribution facility to finalize its new Cove Essential Net Lease Industrial 116 DST offering. The acquisition is a Regulation D, Rule 506(c) offering that is targeting a $14,554,008 equity raise.
According to Dwight Kay, Managing Member and Founder of Cove Capital Investments, the Cove Essential Net Lease Industrial 116 DST is unique in that it provides investors the opportunity to invest in a highly sought-after industrial asset with zero leverage and a newly executed long-term lease extension from one of the nation’s premier logistics operators.
“This distribution facility is compelling for a number of reasons. First, it is 100% leased to a leading logistics operator under a newly executed long-term lease extension, demonstrating the tenant’s strong long-term commitment to this location. Second, the facility serves as a primary operation in the Paducah market, making it critical to the tenant’s distribution network. Third, this offering is a fully debt-free investment—no mortgage, no lender foreclosure risk—which we believe provides investors with a more conservative DST investment than many other DST Sponsors 1031 properties that have debt attached to them,” explained Kay.
Strategic Market Position in a Logistics Hub
Paducah serves as a strategically positioned logistics node with immediate access to six U.S. interstates, five Class-One rail carriers, and river transport connections via the Tennessee and Ohio Rivers to the ports of Mobile and New Orleans. Demographically, the site serves approximately 175,000 people within a 25-mile radius and roughly 80,000 within 10 miles, supporting its role as a critical regional distribution point.
The business climate in Paducah and the surrounding McCracken County area is notably pro-business, with a wide catalog of incentives, including no-cost workforce training, sales and use tax abatements, and jobs tax credits.
Optimized 721 UPREIT Potential
According to Chay Lapin, Managing Member and Founder of Cove Capital Investments, the Cove Essential Net Lease Industrial 116 DST has the potential for an optional 721 UPREIT exit strategy.
