Cove Capital DSTs, 1031 Exchange DST Investments

Are you concerned about your investment in a Cove Capital 1031 DST?

The White Law Group is investigating potential lawsuits, complaints, and FINRA arbitration claims involving Cove Capital DST investments.

Cove Capital Investments, based in California, sponsors Delaware Statutory Trust (DST) offerings for 1031 exchange investors. According to its website and SEC filings, the firm focuses on multifamily, net lease, industrial, and medical properties across the U.S.

While marketed as tax-advantaged real estate investments, Cove Capital DSTs may carry significant risks, including lack of liquidity, high commissions, and limited investor control. Unfortunately, some financial advisors may have unsuitably recommended these complex investments to retail investors seeking stable income or principal protection.

The White Law Group is investigating whether brokerage firms that sold Cove Capital DST offerings may be liable for investor losses.

Cove Capital 1031 DST Offerings

According to SEC filings, Cove Capital has filed multiple Form D offerings to raise capital for various 1031 DST investments, including:

• Cove Net Lease Distribution 44 DST
• Cove LaPlace Dialysis 26 DST
• Cove Shreveport Pharmacy DST
• Cove Essential Missouri 27 DST
• Cove Thistlewood Townhomes DST
• Cove Austin 305 Flats, LLC
• Cove Dulles Distribution DST
• Cove Missoula Multifamily DST
• Cove Essential Net Lease 32 DST
• Cove E-Commerce Distribution DST
• Cove Essential Net Lease 24 DST
• Cove Houston Multifamily 42 DST
• Cove Essential Net Lease 25 DST
• Cove Omaha MSA DST
• Cove Seattle Multifamily DST
• Cove Cocoa Dialysis 31 DST
• Cove Wyoming Distribution DST
• Cove Phoenix Pharmacy DST
• Cove NYC Metro DST
• Cove Airport Distribution 21 DST
• Cove Texas Industrial DST
• Cove Atlanta Medical DST
• Cove Florida Dialysis 22 DST
• Cove Multifamily Income Fund 28, LLC
• Cove Louisville Industrial 19 DST
• Cove Medical Net Lease 43 DST
• Cove DC MSA Medical DST
• Cove San Antonio Multifamily 29, LLC
• Cove Greenville 17 DST
• Cove Fast Food 16 DST
• Cove Essential Net Lease 30 DST
• Cove Net Lease Income Fund 18, LLC
• Cove San Antonio Multifamily 33 DST
• Cove Airport Medical DST
• Cove Debt Free Charlotte Pharmacy DST
• Cove Debt Free Maplewood Industrial DST
• Cove Debt Free Maryland Medical DST
• Cove Debt Free Tacoma Data Center DST
• Cove Debt Free Washington Pharmacy DST
• Cove Debt Free Winston-Salem Distribution DST

The Risks of 1031 DST Investments

While DSTs may provide tax deferral benefits, they also involve considerable risks:

• Illiquidity: Investors may be locked in for 7–10 years or more.
• No Control: DST investors generally have no voting rights or authority over property management or sales.
• Market & Occupancy Risks: Declines in rental income or unexpected expenses can significantly reduce returns.
• High Commissions: Brokers often earn high fees, which may motivate unsuitable recommendations.

Broker Due Diligence and Liability

Under the SEC’s Regulation Best Interest (Reg BI), financial advisors are required to put clients’ interests ahead of their own. If your advisor failed to conduct proper due diligence before recommending a Cove Capital DST investment, you may have grounds for a claim.

Investors who have suffered losses in Cove Capital DST offerings may be able to file a FINRA arbitration claim to recover damages from the brokerage firm that recommended the investment.

FAQs about Cove Capital DST Lawsuits & Complaints

1. Can I file a lawsuit if I lost money in a Cove Capital DST?
Most claims involving DST investments are pursued through FINRA arbitration, not class actions. Investors may be able to recover losses by bringing claims against the brokerage firm that sold the investment.

2. Why are investors filing complaints about Cove Capital DSTs?
Many investors allege that Cove Capital DSTs were misrepresented as safe or income-producing investments, when in reality they carry high risk, illiquidity, and lack of control. Complaints often involve unsuitable recommendations and broker misconduct.

3. How can The White Law Group help with a Cove Capital DST lawsuit or claim?
Our firm has represented hundreds of investors in claims involving DSTs and other high-risk alternative investments. We evaluate potential claims, complaints, and lawsuits on behalf of investors to determine if recovery through FINRA arbitration is possible.

Free Consultation

If you suffered investment losses in a Cove Capital DST 1031 exchange investment, contact The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington. We represent investors nationwide in FINRA arbitration claims.