CHICAGO- Covington Realty Partners, LLC, a Chicago-based real estate investment firm, just sold off a residential community for a significant profit and opted to purchase four single-tenant commercial buildings, including two in Chicago.
“We surveyed 300 commercial real estate investors and were told they want safety, geographically diverse properties in densely populated, affluent areas and they want regular monthly income,” says Marc Goldstein, Covington's founder and CEO.
The firm just sold Meridian Apartments, a 252-unit multifamily development in Indian Trail, North Carolina, for $24.6 million to a partnership sponsored by North Carolina-based Hawthorne Residential Partners. A Covington-sponsored tenant-in-common investment group bought Meridian in 2005 for $16.5 million. Goldstein claims investors got a 237% total return during their seven-year ownership, although that includes the monthly dividend income.
Covington purchased the four retail properties and bundled them into a private equity offering valued at $20 million and aimed at qualified IRC 1031 tax-deferred exchange investors.
The firm spent six months locating and acquiring institutional grade, class A commercial buildings with existing long-term leases to nationally branded retail tenants and aggregating them into the single portfolio.
The portfolio includes:
- a 13,650-square-foot building occupied by a Walgreens and a 30,875-square-foot lot at 2345 W. 103rd St., Chicago, built in 2004 and leased through April 2029.
- a 4,195-square-foot building occupied by Chase Bank and a 43,560-square-foot lot at 488 W. Liberty St., Wauconda, IL., built in 2009 and leased through 2029.
- an 11,115-square-foot building occupied by Mattress Firm and a 69,260-square-foot lot at 2511 W I-H 635 Irving, Texas, built in 2011 and leased through 2023.
- a 6,120-square-foot building occupied by Advance Auto Parts and 32,194-square-foot lot at 445 Terrill Rd., Scotch Plains, New Jersey, built in 2009 and leased through April 2024.
“To build the portfolio,” explains Goldstein, “we looked at 200 properties throughout the US and selected just four because they were the only buildings that met 100% of our very conservative criteria.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
