Covington snaps up vacant Palmdale site

Deal is latest in firm’s SoCal buying spree, part of industrial “land rush”

Los Angeles /
Apr.April 07, 2022 01:48 PM
Covington's Ken Sheer with 400 West Avenue (LinkedIn, Loopnet)
Covington’s Ken Sheer with 400 West Avenue (LinkedIn, Loopnet)

Covington Group, a Dallas-based industrial developer, bought a vacant 77-acre site in the northern L.A. County city of Palmdale for $6 million.

The deal closed last month, and the seller has remained undisclosed.

A representative for Covington did not immediately respond to questions about the deal, but the firm plans to build an industrial warehouse larger of 1 million square feet or more on spec, according to the broker who represented the seller.

“Everybody felt it was a win-win — I could tell you that the buyer is happy, the seller is happy, the city’s happy, I’m happy,” said Mike Radlovic of Coldwell Banker.

Covington, along with its Dallas headquarters, has offices in Las Vegas and Akron, Ohio and focuses on investments and developments of warehouses, manufacturing facilities and other industrial sites in Texas, Ohio, California and South Carolina.

The Palmdale deal was part of a recent flurry of Southern California acquisitions. In October, Covington bought the Southern California Logistics Center, a seven building, 3.4-million-square-foot site in Victorville, for $252 million. At the time that deal ranked as the priciest of the year for the Inland Empire. The same month Covington also closed on Saugus Station, a 70-acre, 24-building industrial complex in Santa Clarita, for an undisclosed price.

Covington’s Palmdale site is located at 400 West Avenue M, less than a mile east of State Route 14 and west of the Palmdale Regional Airport. The vacant property is also across the road from a city courthouse and near a site where a roughly 1 million-square-foot warehouse is planned for Amazon.

It’s the kind of commercial site that’s becoming increasingly valuable: In recent months the industrial market in parts of Southern California has been soaring, as higher prices and limited inventory have also pushed major players farther away from urban centers.

“There is a land rush going on for large pieces of property [where] cities will allow this kind of thing,” said Radlovic. “It’s getting harder and harder.”

Indeed, some municipal leaders have pushed back against industrial operators — last month, Amazon stopped work on a San Francisco warehouse after that city’s Board of Supervisors passed a moratorium on new delivery centers, and in SoCal, amid a pushback from labor and environmental groups, the retail giant also recently pulled out of a plan to build a delivery hub in West Covina.





    Related Articles

    arrow_forward_ios
    Ares Management's Michael Arougheti with  2429 South Malt Avenue (Ares Management, Loopnet)
    Ares Management unit pays $50M for furniture warehouse
    Ares Management unit pays $50M for furniture warehouse
    From left: Amazon's Jeff Bezos, Crow Holdings' Bob McLain, Terra Enterprises' David Haddad, and 18025 Slover Avenue (Getty Images, Crow Holdings, Terra, iStock)
    Crow Holdings sells Amazon-leased warehouse for $102M
    Crow Holdings sells Amazon-leased warehouse for $102M
    Jeff Bezos and Water Garden at 2450 Colorado Avenue (Getty, Google Maps)
    Amazon signs LA’s largest office lease of year
    Amazon signs LA’s largest office lease of year
    University of Redlands President Krista Newkirk with rendering of proposed University Village (University of Redlands)
    Redlands university counters height cap ballot measure that would render project “financially unfeasible”
    Redlands university counters height cap ballot measure that would render project “financially unfeasible”
    Prologis' Hamid Moghadam and 8819 E Edison Ave in Ontario (Google Maps, Prologis)
    Prologis gets option on 177 more acres in Ontario Ranch
    Prologis gets option on 177 more acres in Ontario Ranch
    Assembly Majority Leader Eloise Gómez Reyes (47th Assembly District, iStock)
    Inland Empire industrial developers dodge a bullet — for now
    Inland Empire industrial developers dodge a bullet — for now
    Crow Holdings CEO Bob McLain and 2524 S Lilac Avenue (LinkedIn, Google Maps)
    Dallas outfit spends $72M on industrial in Inland Empire
    Dallas outfit spends $72M on industrial in Inland Empire
    Amazon's Jeff Bezos and the vacant land near Palm Springs (Getty, Google Maps)
    Amazon buys 120 acres set for 3.4M sf distribution hub
    Amazon buys 120 acres set for 3.4M sf distribution hub
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...