Cove Debt Free Washington Pharmacy DST 3099 Bethel Rd, SE, Port Orchard, WA 98366 All-Cash/Debt-Free Net Lease DST Located in Washington State An Income Tax Free State 100% Leased and Occupied Long Term Net Lease through 10/31/2027 Walgreens Corporately Guarantees the Lease (NASDAQ: WBA)
RISKS AND DISCLOSURES This Offering is made only to Accredited Investors per Regulation D, Rule 506c. Potential cash flows/ distributions/ appreciation are not guaranteed and could be lower than anticipated. This material is intended for Accredited Investors generally defined as an individual having a net worth of over 1 million dollars exclusive of primary residence, and certain entities with gross assets of greater than 5 million dollars or made up entirely of accredited individuals. If you are unsure if you or your entity is considered accredited, please verify with your CPA and attorney prior to considering an investment. Past performance is not indicative of future results. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities. These include illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial properties, potential adverse tax consequences, loss of entire investment principal, declining market values, and general economic risks. This material is obtained from sources believed to be reliable however Cove Capital and its principals/affiliates cannot guarantee that it is accurate or complete. Investors should read the entire PPM carefully, including the Risk Factors section of the PPM before investing. There are significant limitations on the ability to sell or transfer interests. Securities offered through WealthForge Securities, LLC member FINRA/SIPC. Cove Capital Investments, LLC and WealthForge Securities, LLC are unaffiliated entities. The Sponsor, Master Tenant, Trustees and their Affiliates will all receive substantial fees and compensation relating to the syndication and sale of interests, as well as relating to the ongoing management and disposition of the Property owned by the DST. The Internal Revenue Code Section 1031 contains complex tax concepts. You should consult your legal or tax professional regarding the specifics of your particular situation prior to considering an investment. This material is not to be interpreted as tax or legal advice. Principals and associates of Cove Capital Investments, LLC ( Cove Capital ), which are registered representatives of WealthForge Securities, LLC, may represent investors considering an investment in the beneficial interests and may make offers and sales of beneficial interests, thereby receiving an economic benefit from the sale of beneficial interests.
TRANSACTION SUMMARY: PROPERTY TYPE: Net Lease Pharmacy OCCUPANCY: 100% LOCATION: Port Orchard, WA INCOME TAX Free State of Washington PROJECTED YEAR 1 DISTRIBUTION RATE: Inquire DEBT FINANCING: None -All-Cash/Debt-Free LEVERAGE RATIO: 0.00% LEASE TERMS: 100% Leased by Walgreens (NASDAQ: WBA) MINIMUM INVESTMENT: $25,000 INVESTMENT HIGHLIGHTS ALL-CASH/DEBT-FREE DST INVESTMENT Contrary to most DSTs in the marketplace, the Cove Capital Debt Free Washington Pharmacy DST is a debt free offering with no mortgages encumbering the assets. This provides a number of potential advantages to 1031 and cash investors with the main one being that they are able to rest assured that there will never be a lender foreclosure since there is no lender on the offering. FORTUNE 500 TENANT Walgreen Co. (S&P BBB), a subsidiary of Walgreens Boots Alliance Inc. (NASDAQ: WBA), operates 8,100 drug stores in 50 states, the District of Columbia and Puerto Rico. Domestically, the company also operates approximately 400 worksite health and wellness centers and in-store convenient care clinics. Walgreens Boots Alliance Inc. reported TTM revenues of $118.2 billion and net income of $4.1 billion as of August 31, 2017. Walgreens provides consumer goods and services in addition to pharmacy and health and wellness services through drugstores, by mail, by telephone and online. In addition to prescription and non-prescription drugs, the company sells household products, convenience and fresh foods, personal care and beauty care items, photo finishing and candy products, home medical equipment, contact lenses, vitamins and supplements and other health and wellness solutions. LONG TERM LEASE** The property has a long-term lease until 10/31/2027 with 10-five year renewal options. Source: * Walgreens 2017 Annual Report - http://www.annualreports.com/hosted%e2%80%a6a_2017.pdf **Port Orchard Offering Memorandum This material is a non-binding Indication of Interest brochure to assist the sponsor with allocation of potential ownership interests. The offering is subject to revision, change and cancellation. There is no guarantee that the offering will returns/cash flow/appreciation/distributions after appreciation are not guaranteed and could be
LOCATION Port Orchard is a city in and the county seat of Kitsap County, Washington State. It is located 13 miles due west of West Seattle and connected to Seattle and Vashon Island via the Washington State Ferries run to Southworth. It is named after Port Orchard, the strait that separates Bainbridge Island from the Kitsap Peninsula. Nearby Surrounding Retailers (Not a part of the subject offering): Starbucks Walmart Supercenter O Reilly Auto Parts Wendys Sherwin-Williams Safeway Big Lots! Staples The UPS Store Subway Sprint Liberty Tax Service 3 MILE DEMOGRAPHICS: TOTAL POPULATION: 41,937 AVERAGE HOUSEHOLD INCOME: $73,449 AVERAGE AGE: 37.70 AVERAGE HOUSE VALUE: $235,009 Source: **Port Orchard Offering Memorandum This material is a non-binding Indication of Interest brochure to assist the sponsor with allocation of potential ownership interests. The offering is subject to revision, change and cancellation. There is no guarantee that the offering will returns/cash flow/appreciation/distributions after appreciation are not guaranteed and could be
11 Reasons We Like Walgreens as the Tenant of our DST 1031 Exchange Investments 1 Walgreens is the largest retail pharmacy across the United States and Europe 2 Walgreens had sales of $118.2 billion in the fiscal year ended August 2017 3 Walgreens has a Standard and Poor s Investment grade credit rating of BBB 4 Walgreens interacts with approximately 8 million customers in its stores and online each day 5 76% of the United States population lives within five miles of a Walgreens or Duane Reade store 6 Walgreens has over 13,200 stores in 11 countries 7 Walgreens has 88 million active members in their Balance Rewards program as of August 2017 1 2 REFERENCES: 3 8 9 10 11 Walgreens has one of the largest global pharmaceutical wholesale and distribution networks with over 390 distribution centers delivering to more than 230,000 pharmacies, doctors, and hospitals each year Walgreens filled 990 million prescriptions (including immunizations) on a 30 day adjusted basis in fiscal 2017 Walgreens has a strong and wide-ranging brand portfolio including Duane Reade, Boots, and Alliance Healthcare as well as their own beauty product brands Walgreens Boots Alliance is one of the world s largest purchaser of prescription drugs as well as many other health and wellbeing products https://news.walgreens.com/fact-sheets/frequently-asked-questions.htm https://investor.walgreensbootsalliance.com/static-files/be2f7807e28a-46a7-8a6f-2f33a5af3806 https://investor.walgreensbootsalliance.com/static-files/ 1503c3a0-8f23-43d7-8068-10d4aab776e5
TENANT OVERVIEW Walgreen Co. (S&P BBB), a subsidiary of Walgreens Boots Alliance Inc. (NASDAQ: WBA), operates 8,100 drug stores in 50 states, the District of Columbia and Puerto Rico. Domestically, the company also operates approximately 400 worksite health and wellness centers and in-store convenient care clinics. 1 Walgreens Boots Alliance Inc. reported TTM revenues of $118.2 billion and net income of $4.1 billion as of August 31, 2017 2. Walgreens provides consumer goods and services in addition to pharmacy and health and wellness services through drugstores, by mail, by telephone and online. In addition to prescription and non-prescription drugs, the company sells household products, convenience and fresh foods, personal care and beauty care items, photo finishing and candy products, home medical equipment, contact lenses, vitamins and supplements and other health and wellness solutions. 1 Walgreens also provides specialty pharmacy services and operates Take Care Clinics to treat patients, write prescriptions and administer immunizations and other vaccines. Walgreens was founded in 1901 and is based in Deerfield, Illinois. 1 1 Company Overview* TTM Revenue: $118.2 billion Number of Locations 8,100 Number of Employees 235,000 3 Headquarters Deerfeld, IL Fortune 500 #17 4 2 3 3 Sources: Walgreens Investor Relations http://investor.walgreensbootsalliance.com/ Walgreens 2017 Annual Report https://investor.walgreensbootsalliance.com/static-files/ 1503c3a0-8f23-43d7-8068-10d4aab776e5 Walgreens Facts & FAQs https://news.walgreens.com/fact-sheets/frequentlyasked-questions.htm Fortune 500 http://fortune.com/fortune500/walgreens-boots-alliance/ *as of 2017
12 Reasons Why You Should Consider All-Cash/Debt-Free DST Properties For Your 1031 Exchange No risk of a lender foreclosure...ever. No refinancing risk. Eliminates the risk of taking on equal or greater debt in future 1031 exchanges. Provides 1031 investors the ability to diversify a portion of their exchange dollars into an all-cash/debt-free property in an effort to reduce potential risk. Flexibility to hold through any potential market downturns, credit crunches, recessions and /or depressions. No cross-collateralized loan risk found in certain leveraged DSTs. No cash flow sweep risk as found in certain DST properties with debt. Oftentimes, an all-cash /debt-free DST can have a higher projected cash flow than leveraged DSTs due to there being no monthly debt service that needs to be paid to a lender. Allows investors to protect themselves from the financial catastrophe of a complete loss of their principal due to a lender foreclosure. No balloon mortgage maturity which is typically found in most leveraged DST properties. No lender prepayment penalties, defeasance costs and/or yield maintenance. Lower fees Oftentimes, all-cash / debt-free DSTs can have lower fees/commissions than leveraged DSTs.
ABOUT COVE CAPITAL INVESTMENTS, LLC Cove Capital Investments creates 1031 exchange DST investments for accredited investors. We utilize the Delaware Statutory Trust (DST) investment structure for our 1031 exchange programs and the Limited Liability Company (LLC) structure for our direct cash investment programs. COVE CAPITAL INVESTMENTS STRIVES TO PROVIDE A LOWER UPFRONT INVESTOR FEE STRUCTURE AND LOWER COMMISSIONS TO DST 1031 EXCHANGE INVESTORS. WE BELIEVE THIS IS IMPORTANT FOR INVESTORS AS IT KEEPS MORE OF THEIR DOLLARS AT WORK FOR THEM. Learn More: A commitment to providing investors with All-Cash/Debt-Free investment options: At Cove Capital Investments we strive to provide our investors with debt free real estate investment options for their 1031 exchange and direct investments. The principals of Cove Capital Investments have Sponsored and co-sponsored the syndication of over 1.3 million square feet of DST properties in the multifamily, net lease, industrial and office sectors as well as they seek to invest side by side their 1031 exchange investors in each of the Cove Capital offerings. www.covecapitalinvestments.com info@covecapitalinvestments.com 1.855.466.5927
RISKS AND DISCLOSURES This Offering is made only to Accredited Investors per Regulation D, Rule 506c. This material is intended for Accredited Investors generally defined as an individual having a net worth of over 1 million dollars exclusive of primary residence, and certain entities with gross assets of greater than 5 million dollars or made up entirely of accredited individuals. If you are unsure if you or your entity is considered accredited, please verify with your CPA and attorney prior to considering an investment. Past performance is not indicative of future results. This material is obtained from sources believed to be reliable however Cove Capital and its principals/affiliates cannot guarantee that it is accurate or complete. There are significant limitations on the ability to sell or transfer interests. Securities offered through WealthForge Securities, LLC member FINRA/SIPC. Cove Capital Investments, LLC and WealthForge Securities, LLC are unaffiliated entities. The Internal Revenue Code Section 1031 contains complex tax concepts. You should consult your legal or tax professional regarding the specifics of your particular situation prior to considering an investment. This material is not to be interpreted as tax or legal advice. Potential cash flows/ distributions/ appreciation are not guaranteed and could be lower than anticipated. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities. These include illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial properties, potential adverse tax consequences, loss of entire investment principal, declining market values, and general economic risks. Investors should read the entire PPM carefully, including the Risk Factors section of the PPM before investing. The Sponsor, Master Tenant, Trustees and their Affiliates will all receive substantial fees and compensation relating to the syndication and sale of interests, as well as relating to the ongoing management and disposition of the Property owned by the DST. Principals and associates of Cove Capital Investments, LLC ( Cove Capital ), which are registered representatives of WealthForge Securities, LLC, may represent investors considering an investment in the beneficial interests and may make offers and sales of beneficial interests, thereby receiving an economic benefit from the sale of beneficial interests. This material is a non-binding Indication of Interest brochure to assist the sponsor with allocation of potential ownership interests. The offering is subject to revision, change and cancellation. There is no guarantee that the offering will returns/cash flow/appreciation/distributions after appreciation are not guaranteed and could be