EL PASO, Texas – Affliates of Dallas-based Covington Group Inc. acquired the 548,629-square-foot Butterfield Trail portfolio in El Paso. Covington Group is already underway with a multi-million dollar capital improvement project for the six-building industrial portfolio. Covington Group acquired the portfolio from Butterfield Trail Trust .
The portfolio, made up of warehouse and flex buildings, was 69 percent occupied at the time of purchase. The most significant capital improvements are underway at 19 Leigh Fisher, where there is a 120,000-square-foot vacancy. These capital improvements include a white box inside the warehouse area, new exterior and interior lighting, exterior paint and landscaping, as well as removal of a former tenant’s manufacturing infrastructure and overall deferred maintenance to the property. Covington expects to complete improvements to the entire portfolio by this summer.
“This acquisition aligns perfectly with Covington’s value-add program that we have successfully implemented in markets across the U.S.,” said Ken Sheer, President and CEO of Covington.
“The Covington acquisition of the Butterfield Trail portfolio is yet another investor making a strategic move into the El Paso industrial marketplace and specifically shows the continued resurgence of the Butterfield Trail submarket,” said Perez Giese, Senior Vice President and Director of CBRE’s El Paso/Ciudad Juárez office.
McCleskey added that “El Paso vacancy has improved from a recession low of 22 percent to 10 percent today. There have been several key leasing and investment sales in the park in the past twelve months and the fundamentals continue to improve.”
June 13, 2016