Covington Affiliates Go for Mega-Industrial Saugus Station in a Big Way

The Saugus Station Industrial Center in Santa Clarita, CA recently sold to affiliates of Covington Group Inc., a Dallas-based private company, along with an institutional capital partner. Reports put the sale price just north of $100 million.

The project located at 25530-25765 Springbrook Ave. 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 feet with units ranging in size from 8,000 to 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 and storage, and transportation sectors.

Covington plans to implement a property and asset management strategy that will focus on tenant retention and aesthetic improvements 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,” says Ken Sheer, CEO and founding partner of Covington.

Craig Peters and Doug Sonderegger with CBRE represented Covington Group. The CBRE team also represented the seller, a subsidiary of New Jersey-based TMC Properties LLC.

“Saugus Station Industrial Center has maintained near full occupancy for the past decade, including during the height of the global pandemic,” says Peters. “The property is well-known in the entertainment industry with many major service providers housing support operations here.”