July 2, 2019— Stos Partners, a privately held commercial real estate investment and management firm, has expanded its Southern California portfolio with the acquisition of four industrial properties encompassing 177,898 square feet. The firm acquired one property in Temecula, California and three in San Diego, California for a total consideration of $25 million.
“As one of the most active buyers of industrial product in the Southern California region, we understand the tremendous value creation that is possible in this product type,” says CJ Stos, Principal of Stos Partners. “Each of the properties we acquired is situated in a prime location within their respective markets, and offers the ability to create long-term value through repositioning and strategic leasing. Our ability to source these assets in the current market speaks to our firm’s rapid movement, our surety of close, and our strong track record and reputation.”
Stos Partners’ new acquisitions include:
- Stos Acquires and Brings Temecula Facility to 100% Occupancy
Stos Partners has acquired a 65,315 square-foot industrial building in Temecula, California for $7.1 million. The seller, a publicly traded company, leased back approximately 50 percent of the building to continue its operations in the facility for the long term.
During escrow, Stos Partners was successful in securing a new tenant to lease the remainder of the building, bringing the property to 100 percent occupancy at closing.
“There is tremendous unmet demand for well-located, highly functional industrial product in Temecula based on limited supply and low vacancy,” explains Jay Boyle, Executive Vice President at Stos Partners.
“We garnered interest from a wide variety of industrial users, and we were successful in identifying a high-quality tenant who committed to a long-term lease, giving us strong cash flow and stability from the very beginning of our ownership.”
The Stos team plans to implement $1.2 million in capital improvements, including a new roof, exterior paint, landscape upgrades, a new parking lot with upgraded lighting, and new signage.
The property is located at 28410 Vincent Moraga Drive in Temecula, California. Rob Gunness and Kevin
Kelly of CBRE represented the seller in the transaction.
- Stos Acquires Miramar Industrial Building Off-Market
Stos Partners has also acquired a 37,882 square-foot industrial property in Miramar, California in an off-market transaction for a total consideration of $6.305 million. Stos plans to reposition and improve the property with $500,000 in capital upgrades and expects to attract a full-building tenant quickly.
“The Miramar and Kearny Mesa submarkets of San Diego are the most sought-after industrial areas in this region, making this a tremendous value-add opportunity for an experienced owner like our firm,” says Jason Richards, Partner at Stos Partners. “The ability to source a vacant, high-quality industrial asset in this submarket speaks to the strength of our broker relationships, while the property’s premier location will offer future tenants’ long-term value.”
The property, which is situated on Kearny Villa Road, offers street frontage and visibility, as well as easy access to I-15 and CA-805. Stos expects the property to garner interest from industrial or showroom tenants, as well as other industrial users seeking well-located, highly functional space.
The building features a clear height of 24 feet, two dock and two grade level loading doors, and the potential to add more dock positions if needed.
Glenn Arnold and Jeffrey Sallen of Cushman & Wakefield represented both Stos Partners and the seller in the off-market acquisition. The property is located at 9600 Kearny Villa Road in San Diego, California.
Stos Acquires Industrial Property in Kearny Mesa and Secures Long-Term Lease
Stos Partners also acquired a 21,200 square-foot industrial property in the Kearny Mesa submarket of San Diego, California for $4.65 million.
During escrow, Stos Partners negotiated a long-term leaseback on 100 percent of the property with the existing tenant, a motorcycle supply parts company that has occupied the project for over 15 years.
“Kearny Mesa is the most desirable industrial submarket in San Diego County, benefitting from exceptional demand drivers and strong economic fundamentals,” says Stos. “This property gives us the rare opportunity to own a low-finish industrial asset in this prime submarket.”
The building offers 85 percent warehouse space and 15 percent office, as well as gated entries, five grade-level loading doors, skylights, and direct access to the I-15 freeway.
The property is located at 3670 Ruffin Road in San Diego, California.
Bryce Aberg and Brant Aberg of Cushman & Wakefield represented Stos Partners as the buyer in the transaction. The seller, a private investor, was represented by Brent Bohlken, Paul Britvar and Justin Maiolo with Newmark Knight Frank.
- Stos Acquires Industrial Refrigeration Facility and Expands Tenant to 100% Occupancy
Stos Partners has also acquired a 53,601 square-foot industrial property in San Diego, California for $6.150 million. The property, a freestanding refrigeration facility, was occupied by two tenants – one of whom is the seller.
Knowing that the seller would vacate upon closing, the Stos team worked with the other existing tenant and successfully negotiated a long-term lease for 100 percent of the building during escrow.
“This is a functional industrial asset offering unique cold storage space with efficient distribution in close proximity to the border,” says Boyle. “By solidifying a lease for 100 percent of the facility, we have locked in long-term cash flow and value at the asset level.”
The building is situated less than a mile from SR-11, which offers connections to SR-905, SR-125, I-805 and I-5, and is also less than one mile from the Northbound Otay Mesa Point of entry.
The property is located at 9925 Airway Drive in San Diego, California. Louay Alsadek and Hunter Rowe of CBRE represented Stos Partners as the buyer in the transaction. The seller was represented by Erik Parker, Joe Smith, and John C. Smith of CBRE.