CBRE Announces Sale of 1 Million SF Industrial Center Plus Land in Santa Clarita, Calif.
20 Dec 2021
CBRE announced the sale of industrial complex Saugus Station Industrial Center in Santa Clarita, Calif., to affiliates of Covington Group, Inc., a Dallas-based privately-held commercial real estate company along with an institutional capital partner.
The project, located at 25530 - 25765 Springbrook Avenue, is a 24-building complex totaling approximately 1 million square feet. Sitting on 69.5 acres, the structures have varying clear heights up to 39’ with units ranging in size from 8,000 – 133,000 square feet. The purchase also included a separate 24-acre fully horizontally improved land site.
Saugus Station Industrial Center is occupied by a variety of tenants, with 70 percent in the entertainment or entertainment-servicing industry. Other users include companies in the assembly, light manufacturing, moving & storage and transportation sectors.
Covington plans to implement a property and asset management strategy that will focus on tenant retention and aesthetic improvements to the property to increase curb appeal.
“We feel this property provides an opportunity to create a ‘best-in-class’ entertainment-focused location that will almost be one-of-a-kind in what we are able to offer tenants,” stated Ken Sheer, CEO and Founding Partner of Covington.
Added CBRE’s Peters, “Saugus Station Industrial Center has maintained near full occupancy for the past decade, including during the height of the global pandemic. The property is well known in the entertainment industry with many major service providers housing support operations here.”
The CBRE team also represented the seller, a subsidiary of New Jersey-based TMC Properties, L.L.C.
Industrial vacancy rates in the Los Angeles area are at a historic low. Santa Clarita recorded a vacancy rate of 0.5 percent according to CBRE’s Q3 MarketView.
About Covington Group, Inc.
Covington Group, based in Dallas, TX, is an entrepreneurial real estate investment and development firm that specializes in value-add light industrial, warehouse, and bulk-distribution investments across the United States. Covington focuses on the development and entitlement of land and state of the art, big box industrial buildings as well as the acquisition of corporate dispositions, REO’s, and other types of vacant or distressed industrial properties with the goal of recycling and re-tenanting the asset. Covington owns and manages approximately 8.5 million square feet in various markets around the country and has constructed or redeveloped over 35 million square feet of commercial and industrial property and developed over 10,000 acres of land in its 40-year history.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.