(EDITOR’S NOTE: According to multiple sources familiar with the transaction, the property sold for $270 million, or approximately $80 per square foot.)
VICTORVILLE, Calif., Oct. 27, 2021 — An affiliate of Covington Group, Inc., a privately-held commercial real estate company focused on industrial investment and development in select U.S. markets, along with an institutional capital partner, recently acquired seven buildings totaling nearly 3.4 million square feet of space at Southern California Logistics Centre (“SCLC”), located in the Inland Empire North submarket.
This acquisition represents the single largest acquisition to date of industrial buildings in the Inland Empire North submarket. SCLC is located on the site of the former George Air Force Base in Victorville, California. SCLC is the result of an over 20-year effort by the City of Victorville to redevelop and reimagine the former Air Force Base as a fully-integrated multimodal transportation hub generating jobs and commerce for the entire region.
All of the buildings acquired are Class “A” quality, featuring up to 32′ clear height, concrete-tilt construction, large functional truck courts and an abundance of trailer parking. The buildings were constructed between 2008 and 2017. The acquisition boasts several national tenants such as Newell Brands, M&M Mars, Boeing, and Plastipak Packaging, with some occupying multiple spaces within the portfolio.
“Utilizing our tenant-centric approach to property management, Covington’s focus will be to continue to develop and strengthen relationships with these tenants, both large and small, in order to accommodate renewals and expansions as the needs arise going forward” stated Ken Sheer, CEO and Founding Partner of Covington. Furthermore, Mr. Sheer emphasized “We feel that this portfolio of buildings at SCLC, and the Inland Empire North submarket in general, is uniquely positioned to address the overflow of demand seen from tenants coming from the Los Angeles basin in search of more affordable space that still meets their specific requirements.”
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. Active in the Inland Empire North submarket for over 15 years, 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, REOs, and other types of vacant or distressed industrial properties with the goal of recycling and re-tenanting the asset. Covington owns and manages approximately 9 million square feet in various markets around the country and has constructed or redeveloped over 35 million square feet of commercial and industrial space in its 40-year history.
