Cove Capital Targets $11M Equity in Michigan Corporate Asset Buy

The Southfield Corporate 118 DST, a Regulation D, Rule 506 (c) offering, carries an equity target of $11,039,877. The property functions as the North American headquarters for a global industrial firm with annual revenues exceeding $10 billion. By acquiring the asset directly on its own balance sheet before launching the DST, Cove Capital bypassed the need for external financing, a move Managing Member Dwight Kay said allowed the firm to capitalize on a distressed seller’s timeline while purchasing below replacement costs.

Following the acquisition, the firm plans a series of capital improvements, including roof and HVAC modernizations, elevator upgrades, and parking lot renovations. Co-Founder Chay Lapin noted that the deal reflects a strategy of targeting fundamentally strong but temporarily mispriced assets. The company, which manages over 3.7 million square feet of real estate nationwide, intends for these enhancements to bolster the property's long-term competitive standing and investor returns.