The property, situated in the high-traffic Bayou Walk Shopping Center, is fully occupied by two national retail tenants that recently exercised lease renewal options. Cove Capital acquired the asset at approximately 30% below replacement cost, with current rental rates sitting 29% under the submarket average. This gap provides the firm with a clear mark-to-market strategy to drive future income growth as leases roll over.
Cove Capital Targets Shreveport Retail for Latest Debt-Free DST Offering
Cove Capital Investments has acquired a 29,000-square-foot retail asset in Shreveport, Louisiana, for its latest Delaware Statutory Trust offering. The firm is seeking to raise $7.07 million in equity from accredited investors to fund the acquisition, which was completed on an all-cash basis to eliminate traditional financing risks.
Managing Member Dwight Kay stated that the firm’s principals are investing their own capital alongside investors to align interests. The acquisition arrives as the Shreveport-Bossier region sees a surge in industrial and entertainment investment, including major projects from Amazon and G-Unit Film & Television. With a local population of 60,000 within a three-mile radius and average household incomes topping $84,500, the firm views the corridor as a stable environment for long-term hold strategies. Cove Capital, which manages over 3.7 million square feet nationwide, plans to implement targeted property improvements to bolster tenant retention.
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