Saugus Station Industrial Heart. Picture courtesy of JLL Capital Markets
Covington Group has landed a brand new tenant at Saugus Station Industrial Heart in Santa Clarita, Calif. Scenic Expressions, a supplier of units, storage and transportation for the movie and tv business, signed a 299,234-square-foot lease.
Covington Group acquired the 975,300-square-foot warehouse in 2021 for $110 million. In line with CommercialEdge knowledge, the property is topic to an $84 million mortgage that’s set to mature in 2031, offered by Starwood Capital Group.
Accomplished in 1955, the Class B property spans throughout virtually 70 acres and encompasses 10 buildings, in addition to 683 parking areas. The one-story amenities function 20- to 25-foot clear heights, local weather management and loading doorways. Marathon Truck Physique, Builders FirstSource, Reasonably priced High quality Shifting and Storage, and Watford Shifting & Storage are among the many tenants on the property.
READ ALSO: Creating LA’s Subsequent Era of Studios
Positioned at 25655 Springbrook Ave. within the San Fernando Valley, the warehouse is 33.5 miles from Los Angeles, and offers entry to a number of routes resembling interstates 5, 210 and 405. Corporations within the surrounding space embrace Dwelling Depot, Santa Clarita Studios, King Soundworks Santa Clarita, and LA North Studios – Tibbitts, amongst others.
Managing Director Brent Weirick with JLL Capital Markets acted on behalf of the tenant, whereas the owner was represented by Vice Chairman Craig Peters with CBRE.
The proprietor of Scenic Expressions, Mark Larinto, acknowledged in ready remarks that his firm wanted an area that would not solely accommodate the storage of huge units, however that was additionally near Santa Clarita’s movie studios. The San Fernando Valley, northwest of Los Angeles, is dwelling to main movie and tv studios, that are a powerful driver of commercial demand.
Tight market circumstances
A Colliers report on the Valley’s industrial market confirmed that the general emptiness within the space stagnated at 0.4 p.c within the third quarter of 2022, and elevated 40 foundation factors to 1.1 p.c in Ventura County. The market had a building pipeline of 844,558 sq. ft, together with Sylmar Studios, a 300,000-square-foot, $500 million manufacturing facility for TV and movie that’s slated for completion later this 12 months.
At 0.3 p.c, Santa Clarita had the bottom emptiness within the Better LA space, regardless of historic greater charges. This submarket additionally recorded the very best optimistic internet absorption within the Valley at 313,901 sq. ft on account of Amazon taking occupancy at its 278,000-square-foot facility in Needham Ranch, the identical report confirmed.
A JLL report for a similar quarter confirmed that tenants searching for area had very restricted choices. Industrial emptiness within the San Fernando Valley market was 0.8 p.c, with solely 415,751 sq. ft underneath building.
