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MORAINE, OH-Santa Monica, CA-based Covington Capital has purchased a 771,200-sf manufacturing and distribution facility here currently leased by Cooper Tire. The company bought the building from Cooper in a sale-leaseback for $7.4 million. The price was somewhat lower than normal rates because the tenant plans to vacate the property, at 3601 Dryden Rd., by late 2009. The building reportedly sold for $7.2 million in 1985.

Ken Sheer, president of Covington, says his firm specializes in purchasing distressed properties such as this 30-year-old industrial building. “Cooper needed to monetize the asset, and we were able to pay cash, so we got the building for substantially, about 30 cents on the dollar, than reproduction cost,” he tells GlobeSt.com.

The building has 32-foot clear ceiling heights, a dock per 10,000 sf and sits right along Interstate 75, in this city that’s between Columbus and Cincinnati. Sheer says his firm will turn the facility into serving multi-tenant. “We always subdivide the singe tenant, vacant buildings that we acquire, we’ll probably subdivide this down to 200,000 sf,” he says. “We’ve already got some activity, we’ve sent out proposals to two companies that have stated they could wait until mid-2009 to move.”

He says this facility is the biggest property in the area that offers 32-foot ceilings, and has a definite growth in demand. “With the economy and companies watching gas prices, Dayton, which is centrally located, is starting to appear more appealing for distribution companies. We want to offer one of the lowest-priced, high-bay distribution facilities in the region.” The company will reportedly pay $2 million to renovate the property.

The company has an office in Ohio, and has some other projects in the area, such as developing 100 acres on a rail line, Allen Creek Park, in Columbus. Covington also rebuilt a former Kroger in Springdale into the Kempter Commons power center.

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