Cove Capital Boosts DST Property Value Through Retail Expansion

The project at the Parkdale Commons Opportunity 62 DST involved securing a 10-year triple-net ground lease with 7 Brew Coffee. By placing a drive-thru kiosk on previously dormant pavement, the firm effectively created an asset with an estimated market value of $1.25 million, based on a 6% capitalization rate. This gain was not part of the initial business plan, providing an unexpected boost for stakeholders.

Unlike many private equity structures that retain a portion of appreciation, the Delaware Statutory Trust model employed by Cove ensures that 100% of net sales proceeds flow to investors. Founders Dwight Kay and Chay Lapin point to this initiative as evidence of their commitment to performance-driven management rather than passive ownership. With over 3.7 million square feet currently under management, the firm continues to prioritize these types of value-add projects to differentiate its offerings within the 1031 exchange market.