Covington Group, Inc. Acquires Industrial Property in San Francisco Bay Area
The real estate firm has acquired a 650,000 SF asset in Antioch, California.
DALLAS, Oct. 28, 2015 /PRNewswire/ -- Dallas,TX based real estate investment firm Covington Group, Inc. (Covington) is proud to announce the acquisition of a two-building, 650,000 SF industrial facility in Antioch, California.
The location of this asset creates a unique offering in a tightening market, as logistics groups, warehouse users, and light manufacturing companies have been increasingly drawn to the Antioch area because of the lower facility costs, a reliable supply of labor, and a lower cost of living as compared to San Francisco and Oakland.
The acquisition allows Covington the opportunity to purchase a near-stabilized asset at a discount to replacement cost. Covington intends to update the property utilizing an improvement program that it has successfully deployed at similar properties across the country. Once reintroduced to the market, the facility will be ideally positioned to attract value-oriented tenants in need of access to the urbanized core of the San Francisco Bay area.
The complex is currently 86% leased with a diverse tenant mix and significant remaining term. While the specifics of the acquisition remain undisclosed, Ken Sheer, CEO of Covington Group, Inc., stated, "To find an asset of this size and quality in the East Bay market of California is becoming extremely difficult. We think this acquisition provides a unique opportunity to invest in a tightening market with good fundamentals at a favorable basis."
About Covington Group, Inc.
Covington Group, Inc. is an entrepreneurial real estate development and investment company that focuses on complex, creatively financed projects across the United States. The partners have more than 80 years of combined industry experience and have developed or redeveloped over 25 million square feet of commercial and industrial property. Covington targets investments ranging from $5 to $50 million and specializes in projects that involve the redeveloping and/or repositioning of Class B & C commercial and industrial assets. Covington Group Inc. and its affiliate companies currently own more than 10,000,000 SF of commercial/industrial space in 13 states.
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SOURCE Covington Group, Inc.
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