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Cove Eastwood Village Opportunity 71 DST
Offered By
Cove Capital Investments
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 100000
Overview
Eastwood Village Opportunity 71 DST is a 130,056 square foot all-cash/debt-free, multi-tenant retail center in a dense and affluent submarket of Birmingham, AL. The Property is shadow anchored by a high-performing Walmart and is adjacent to a brand-new Amazon Distribution Facility.
Tenancy

Eastwood Village is stabilized at 97% occupancy and includes national tenants such as Ross, Five Below, Office Depot, Michael’s, Party City, Starbucks, and more. The Property benefits from being shadow anchored by a high-performing Walmart Supercenter and an array of outparcels that include tenants such as Chick-Fil-A, Wells Fargo, Walgreens, Regions Bank, Pep Boys, PC Bank, Waffle House, and more.

Location

Eastwood Village is positioned just off the intersection of I-20 & Crestwood Blvd (SR-78), which sees a combined 78,000+ vehicles per day. The center boasts a 97% occupancy rate and is the #1 community shopping center in the market. The area has a 5-mile population of 116,944 and an average household income of $106,636.

Market

Birmingham ranks as one of the most important business and banking centers in the Southeastern U.S. and is home to Regions Financial and BBVA Compass and major auto manufacturers such as Honda, Hyundai, and Mercedes Benz. Within 6 miles of the University of Alabama, Birmingham is home to over 21,600 full-time students.

Property at a glance
Leverage 0% - All-Cash/Debt-Free
Current Occupancy 97%
1031 Exchange Qualified: Yes
Investment Highlights
Eastwood Village is the #1 retail shopping center in the market with 3.4M annual visits.
Many of the tenants rank within the top percentile within their respective chains and are top performers.
Other surrounding tenants include Chick-fil-A, Wells Fargo, Walgreens, Regions Bank, Pep Boys, PC Bank, Waffle House, and more.
The business plan aims to realize maximum operating performance, including leasing vacant space.
Value-add strategy in an effort to potentially increase net operating income and property value/investor equity.
Management
Cumulative Distributions

Cove Capital Investments

Cove Capital Investments creates investments for accredited investors, with an emphasis on debt-free 1031 exchange Delaware Statutory Trust (DST) investments as well as debt-free real estate funds. Our offerings are attractive to those investors seeking to potentially mitigate risk through debt-free offerings with no long-term mortgages encumbering the properties, which is a contrarian investment approach to most other offerings on the market.

Cove Capital 1031 exchange DST and fund offerings have included the following tenants and businesses: FedEx, Walgreens, CVS, Fresenius, DaVita, Dollar General, Family Dollar, Advanced Auto, Wawa, Frito Lay, and more.

Cove Capital raises capital from high net worth accredited investors via broker-dealers, registered investment advisors, and registered representatives throughout the United States.

The Cove Capital portfolio consists of over 80 properties with an acquisition value of over $580,000,000. The principals of Cove Capital Investments endeavor to invest alongside 1031 exchange investors in each of their offerings. Cove Capital is also believed to have been the first DST sponsor to successfully launch and fully subscribe to multiple debt-free multifamily DST offerings.

https://covecapitalinvestments.com/
  • Dwight Kay
    Co-Founder and Managing Member
  • Chay Lapin
    Co-Founder and Managing Member
  • Corey Nolen
    Vice President
Dwight Kay
Co-Founder and Managing Member

Mr. Kay is a Co-Founder and Managing Member of Cove Capital Investments, LLC. Cove Capital Investments, LLC is a real estate sponsor specializing in Delaware Statutory Trust (DST) syndications to 1031 exchange investors with a focus on all-cash/debt-free DSTs and multifamily apartment DSTs. Mr. Kay is also the Founder and CEO of Kay Properties and Investments, LLC, which is a provider of DST brokerage services headquartered in Los Angeles (Torrance) with offices in San Diego, San Francisco, Seattle, New York and Washington, D.C. Mr. Kay has participated in DST offerings in excess of a total amount of $30 billion. With this Offering, Mr. Kay has sponsored the syndication of over 1.9 million square feet of DST properties in the multifamily, net lease, industrial and office sectors. Prior to entering the real estate securities industry, Mr. Kay was involved in commercial real estate working for a national commercial real estate brokerage firm focusing on multifamily and commercial real estate. Mr. Kay received his Bachelors in Business Administration from Point Loma Nazarene University in San Diego, California, and successfully obtained his Series 7, 22 and 63 securities licenses as well as a real estate broker’s license.

Chay Lapin
Co-Founder and Managing Member

Mr. Lapin is a Co-Founder and Managing Member of Cove Capital Investments, LLC. Mr. Lapin is also the President of Kay Properties and Investments, LLC. Including this Offering, Mr. Lapin has sponsored over 1 . 9 million square feet of DST properties in the multifamily, net lease, industrial, and office sectors. Mr. Lapin’s career started working with a Los Angeles-based multifamily apartment brokerage firm as a real estate analyst. From there, he took a position with a large apartment owner as property and asset manager of a portfolio of multifamily apartment units. Mr. Lapin holds the series 7 and 63 securities licenses as well as a real estate broker’s license. A graduate of the University of California at Los Angeles, Mr. Lapin was a four-time Academic All-American Water Polo athlete and recipient of the prestigious UCLA Athletic Department Most Courageous and Character Award. He holds degrees in Geography and Environmental Studies, with a minor in Geospatial Information Systems. Mr. Lapin was a top ranked U.S. performer and represented the United States in the 2012 London Olympic Games on the US Men’s National Water Polo team.

Corey Nolen
Vice President
Track Record

Please refer to the Documents section for Cove Capital Investment's Track Record.

Property Information

Major Tenants

Tenant Name Year 1 Rent % Portfolio
Ross Dress for Less, Inc./Ross Stores, Inc. 16.80%
Office Depot, Inc. 13.84%
Party City Corp./Party City Holdings, Inc. 11.14%
All others (each less than 10% of portfolio rent) 58.22%
Total 100%

Ross Stores

Ross Stores, Inc. is the second-largest North American off-price retailer by both revenue and market cap. As of 2021, Ross operated 1,923 stores in 40 U.S. states, including the District of Columbia and Guam. Ross retails name-brand/designer apparel, accessories, footwear, and home decor at low prices. It is a credit-rated tenant with a BBB+ S&P rating and an A2 Moody’s rating.

Office Depot

Office Depot, Inc. is a global supplier of office products and services, was formed by the merger of Office Depot and OfficeMax. Office Depot was originally incorporated in 1986. The ODP Corporation reported approximately $8.5 billion in sales in fiscal year 2022 and a market capitalization of approximately $2 billion.

Party City

Party City’s parent organization is Party City Holdings Inc. Based in Elmsford, New York, the company is the largest retailer of party goods in the United States, Canada, and Mexico, operating over 900 company-owned and franchise outlets under the Party City, Halloween City, Toy City, and Factory Card & Party Outlet brands.

Location Information

Market Overview

The astonishing pace of Birmingham’s growth last century earned the city its nicknames, The Magic City and The Pittsburgh of the South. Today Birmingham ranks as one of the most important business and banking centers in the Southeastern U.S. and is home to Regions Financial and BBVA Compass and major auto manufacturers such as Honda, Hyundai, and Mercedes Benz. Birmingham is the cultural and entertainment capital of Alabama and hosts numerous cultural festivals showcasing music, as well as the Sidewalk Moving Picture Festival which brings filmmakers from all over the world to the city. Birmingham is a major city for higher education and home to the University of Alabama at Birmingham, Samford University, Birmingham-Southern College, and Miles College. Birmingham is also the headquarters of the Southwestern Athletic Conference and the Southeastern Conference, one of the major U.S. collegiate athletic conferences.

Area Demand Generator & Landmarks

  • Walmart Supercenter (adjacent)
  • Amazon Fulfillment Center (0.5 miles)
  • Flora Johnston Nature Park (0.9 miles)
  • Irondale, Alabama (1.6 miles)
  • Birmingham-Shuttlesworth International Airport (3.6 miles)
  • University of Alabama at Birmingham (5.3 miles)
  • Downtown Birmingham (6.3 miles)
Distributions

Please refer to the Cove Eastwood Village Opportunity 71 DST - Private Placement Memorandum in the Documents section for details regarding distributions and fees.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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