Cove Capital Investments Adds New Chipotle Net Lease Property in Wichita, KS to Its Debt-Free Net Lease Income Fund 18
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
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.
