November 5, 2018 – Stos Partners, a privately held commercial real estate investment and management firm, has acquired an eight-building, 1,352,047 square-foot multi-tenant industrial portfolio in the U.S. border city of Laredo, Texas in an off-market transaction for a total consideration of $88 million. The asset – Stos Partners’ first in Texas – was purchased in JV partnership with institutional investor Washington Capital Management on behalf of one or more of its investment clients.
“This is a milestone opportunity for any investor,” says CJ Stos, Principal of Stos Partners. “Our ability to source an asset of this magnitude off-market and significantly increase its value during escrow speaks to the depth of our capabilities, both as real estate operators and investors.”
Stos Partners was successful in attracting and signing several new leases during escrow, adding to a tenant base comprised primarily of publicly traded credit tenants.
“This submarket commands an industrial presence from some of the strongest companies in the U.S.,” says Stos. “The property is just five miles from the City of Laredo’s World Trade Bridge and World Trade Port of Entry, which is the busiest commercial crossing in the United States, facilitating more than $300 billion in imports and exports annually.”
The City of Laredo is widely recognized as the number one inland port along the U.S.-Mexico border. More than 2.5 million trucks crossed the border in 2017, and the market is also home to 510 freight forwarders, 210 trucking companies, and 105 U.S. Customs Brokers.
“The Laredo submarket has historically been a challenge to transact in due to tightly controlled supply. This combined with the unwavering demand by national companies with a must have presence make it one of the most attractive industrial markets in the country,” says Jason Richards, a Partner at Stos Partners. “Industrial vacancy in Laredo stands between 1 and 2 percent, with vacancy rates averaging 4.65 percent and never exceeding 8.8 percent over the last 16 years. Acquiring this kind of portfolio in this market is a rare opportunity and will provide strong returns and growth on a long-term basis.”
“This acquisition is aligned with our ongoing investment platform, through which we identify and acquire well-positioned investment opportunities, implement improvements that immediately create value, and operate in a way that drives strong returns and value for our investors,” says Richards. “We will continue to seek additional investment opportunities in the Texas market, as well as in our core Southern California markets of San Diego, Orange County, and Los Angeles.”
Stos Partners acquired the Laredo industrial portfolio from a privately held national real estate firm.
The properties are located at 11302 A/B/C East Point Drive, 417 Union Pacific Boulevard, 418 Union Pacific Boulevard, 505 Union Pacific Boulevard, 11921 Hayter Road and 11909 Hayter Road in Laredo, Texas.