Cove Capital Investments, a sponsor of Delaware statutory trusts and other real estate investment offerings, announced it has completed the acquisition of a Chipotle net lease restaurant retail asset in Wichita, Kansas on behalf of Cove Net Lease Income Fund 18 LLC. The acquisition price was not disclosed.
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, Kansas that sees more than 46,000 vehicles per day.
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.
“We were excited to include this acquisition as part of our Net Lease Income Fund 18, LLC for a number of reasons,” said Lapin. “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.”
The fund seeks to raise $50 million from accredited investors with a minimum investment of $50,000. Cove Net Lease Income Fund 18 completed its first sale in August 2020 and had raised approximately $17.9 million as of Sept. 27, 2022, according to a filing with the Securities and Exchange Commission.
“The vast majority of investment real estate offerings are leveraged, especially in the DST space and broker-dealer community,” Dwight Kay, managing member and co-founder of Cove Capital. “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.”
Cove Capital Investments is a private equity real estate firm providing accredited investors access to 1031 exchange-eligible Delaware statutory trust properties, as well as other real estate investment offerings.
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