GREENVILLE, S.C. & SAUGET, Ill.--(BUSINESS WIRE)--Real estate investment firm Covington Group, Inc. (formerly Covington Capital) continues its expansion into new markets with the 2012 acquisitions of 682,000 square feet of industrial space in Greenville, SC as well as a 502,500 SF building in Sauget, IL (metro St. Louis).
Acquired in June, 2012, the purchase in Greenville includes two buildings off Augusta Road in Greenville and three buildings off Highway 14 in Greer, totaling approximately 682,000 SF of warehouse space in five separate buildings. Covington has already completed significant improvements to many of the buildings, re-branding them as Logistics Pointe, Greenville and Logistics Pointe, Greer. The buildings were acquired with approximately 270,000 SF of vacant space.
Covington Senior Vice President Michael Skunda has been studying the Greenville market for about four years. The educational programs and manufacturing base were attractive, but the I-85 corridor and its proximity to Charlotte and Atlanta in particular drew him to the area. “This is their first step into the Greenville market,” said Perry Major, CBRE senior associate of industrial and brokerage services. “They want to build relationships with current tenants and future ones.”
With demand increasing and vacancy rates declining, Skunda said he had no reservations buying in what he calls a “very healthy market.” To date, Covington has already leased up 120,000 SF at Logistics Pointe, Greenville.
Closing on the property on December 28, 2012, 1659 Sauget Business Blvd, LLC (an affiliate of Covington) acquired a 502,500 SF Class A, cross-dock industrial building located in the Sauget Business Park, less than 5 miles from Downtown St. Louis. The building was acquired with a short-term lease in place with the Procter & Gamble Company, who is scheduled to vacate the premises in May 2013. The building, known as 255 Logistics Center and constructed in 2008, is expandable to 950,000 SF.
Mr. Skunda remarked, “We believe that the St. Louis market has hit the radar screen as a strategic point for many regional and national distributors, and that the market for big-box, high-throughput warehouse product will continue to get stronger.” The particular attributes of the Sauget site, including proximity to downtown St. Louis, the proximity to both road and rail infrastructure, the excellent condition of the asset, as well as a favorable property tax structure, all gave Covington particular interest in the property.
About Covington Group, Inc.
Covington Group, Inc. (CGI) 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. The collective resume includes build-to-suit and spec warehouses, retail, office, hotels and master planned communities. CGI 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. CGI and its affiliate companies currently own more than 9,000,000 SF of commercial/industrial space and are actively developing more than 12,000 acres of land in the western United States.