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Covington Group acquires 70-acre industrial complex in Santa Clarita
Dallas-based investor plans renovation of Saugus Station Industrial Center
Covington Group has renovation plans for a newly acquired 1-million-square-foot industrial complex in Santa Clarita, the center of a growing submarket located about 35 miles northwest of Downtown Los Angeles.
The Dallas-based firm paid an undisclosed sum for the property, according to the San Fernando Valley Business Journal. Covington said in a press release that it partnered on the deal with an “institutional capital partner.”
The Saugus Station Industrial Center at 25655 Springbrook Avenue comprises 24 buildings across 70 acres. Units range between 8,000 square feet and 133,000 square feet. The deal included a separate 24-acre property.
The complex is fully leased, mostly to entertainment-related companies, including a scenery and set storage company. Other tenants include a truck repair company and a moving company.
Covington plans to undertake some aesthetic renovations and cater to entertainment companies.
“We feel this property provides an opportunity to create a ‘best-in-class’ entertainment-focused location…” Covington CEO Ken Sheer said.
Santa Clarita has seen a series of large industrial investment deals and leases over the last couple of years.
Amazon leased 155,000 square feet and LA North Studios leased 114,000 square feet there last year. Dietary supplement maker Lief Labs also leased 111,300 square feet in Valencia over the summer.
More recently, Oxford Properties bought a 119-acre life sciences campus in Santa Clarita for $133.5 million. The deal includes 40 acres of undeveloped land.
Multifamily rent growth in Santa Clarita was outpacing many other parts of the Los Angeles area before the pandemic and that’s continued through this year.
Santa Clarita has consistently posted significant growth and will likely continue to do so because of headroom to grow and because of increased demand since the pandemic for suburban-style living.
Investors are willing to pay big money to scoop up properties there. Fairfield Residential in September paid $62 million for a 130-unit complex in Valencia — a 35 percent increase from its last sale price in 2017.
Later that month, Benedict Canyon Equities paid $54.1 million for a 148-unit complex in the city. That was 55 percent more than what MKB Ventures paid for the property in early 2018.
[SFVBJ] — Dennis Lynch