Covington Group Inc., along with an institutional capital partner, recently announced the acquisition of the 24-building Saugus Station Industrial Center.
The portfolio of buildings, located at 25530-25765 Springbrook Ave., sits on 69.5 acres and totals approximately 1 million square feet, with varying clear heights up to 39 feet and 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.
The center has often been used by tenants in the entertainment industry, as it offers easily accessible space in close proximity to many movie and television studios and sound stages, according to a Covington news release.
Of its tenants, 70% are in the entertainment or entertainment-servicing industry, while other users include companies in the assembly, light manufacturing, moving and storage, and transportation sectors, according to a CBRE release.
For the better part of a decade, the project had been 100% occupied by a variety of tenants due to its ability to offer a desirable in-fill location, along with exclusive outdoor storage yards, per the release.
“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,” Ken Sheer, CEO and founding partner of Covington, said in a prepared statement.
The Texas-based, privately held commercial real estate company focuses on industrial investment and development and plans to implement a robust property and asset management strategy, focusing on tenant retention and aesthetic improvements to the property to increase curb appeal, according to Covington.
CBRE’s Craig Peters and Doug Sonderegger represented both the buyer, Covington, and seller, New Jersey-based TMC Properties LLC, in the transaction, per the release.
“Saugus Station Industrial Center has maintained near full occupancy for the past decade, including during the height of the global pandemic,” Peters said in the statement. “The property is well-known in the entertainment industry with many major service providers housing support operations here.”