Stos Partners Completes $100 Million in Transactions During 2018

Stos Partners, a privately held commercial real estate investment and management firm, has announced approximately $100 million in transactions during the first six months of 2018.

“Transaction velocity is rapid in the San Diego industrial market, and savvy investors are faring very well when it comes to taking assets full-cycle,” says CJ Stos, Principal of Stos Partners.

“As experienced investors, we remain cognizant of where we are in the cycle, ensuring that our actions are strategic and thoughtful,” Stos continues. “By being selective in our acquisition strategy, we have been able to leverage the power of the current market, while also building a strong portfolio of assets that will perform well for the long-term.”

Stos Partners’ approximately $100 million in recent transactions include:

Acquisition and Sale of 26040 Ynez Road

Stos Partners bought and sold this 161,117 square-foot flex manufacturing facility in Temecula, California during the first half of 2018.

Stos acquired the property from a private individual and sold it to an industrial user for a significant profit. The user will fully occupy the facility.

Situated on eleven acres, the property consists of one building on two parcels, and features high-quality construction, flexible layouts, upgraded finishes, dock and grade level loading, and abundant surface parking.

“While our hold period on this asset was shorter than we initially anticipated, we recognized the value in the property’s functional layout and strong location,” explains Jason Richards, a Partner at Stos Partners. “With continued record-low industrial vacancy in the region, we understood that we would have the opportunity to lease or sell the asset quickly to the right company, which is exactly what we were able to do.”

The property is located in close proximity to nearby retail and services, with easy access to more than 270 restaurants, coffee, and fast food offerings, as well as San Diego’s designated Foreign Trade Zone (FTZ) and the recently announced San Diego Innovation Hub or “iHub.”

The property is located at 26040 Ynez Road, Temecula, California.

Lease and Sale of Rancho Bernardo Asset

Stos Partners entered escrow to acquire a 54,964 square-foot freestanding flex/R&D building in the Rancho Bernardo submarket of San Diego for $6.25 million. During escrow, Stos was successful in attracting a publicly traded company to sign a ten-year lease to fully occupy the property and sold it to a local investment firm for $8.3 million.

“By identifying the right tenant and negotiating a desirable lease, we were able to create significant value for the asset during the escrow period,” explains Richards. “Typically we buy and hold assets for much longer than this one, but in this case, we were able to create a win-win-win situation for our firm, the new tenant, and the local investment firm that ultimately became the property owner.”

The property is situated on 3.32 acres and offers 16’ clear heights, grade-level and docking doors, as well as easy access to the I-15 freeway. It is located at 16262 W. Bernardo Dr., in San Diego, California.

Sale of Oceanside Property

Stos Partners, in partnership with a local firm, also executed the $36 million sale of an industrial property in Oceanside, California during the first half of 2018.

This industrial asset was built in 2006 and acquired in April 2013 for $19.84 million.

This recent sale reflects a strong value increase for the asset, which Stos achieved by increasing occupancy from 76-percent to 100-percent, implementing strategic upgrades, and introducing operational efficiencies to improve long-term NOI for the asset.

The property was acquired by an institutional investor and is located at 3801, 3807 and 3819 Ocean Ranch Blvd. in Oceanside, California.

Sale of National City Industrial Asset

Stos Partners executed the $21 million sale of this 91,541 square-foot single-tenant industrial building in National City, California during the first half of 2018. Stos originally acquired the asset for $12.225 million, reflecting significant value creation in just 14 months.

“During our hold period, we were successful in securing a long-term lease with a major Fortune 500 company, bringing the asset to 100-percent occupancy and positioning it as a long-term cashflow investment,” says Stos. “Institutional appetite for stabilized industrial product continues to be strong, and we were able to sell the asset to a large institution after a relatively short hold.”

Stos notes that the firm does not intend to hold all its assets for short periods. However, in the current market, the firm is strategically selling when the right buyer is interested - which was the case in this sale.

The property is located at 901 Bay Marina Drive in National City, California.

Sale of Carlsbad Village Submarket Asset

Stos Partners executed the $8.2 million sale of a three-story, high-end, mixed-use property that serves as a retail, restaurant, creative office, and residential space in Carlsbad Village in early 2018. The firm purchased the asset for $6 million just 16 months prior.

Stos Partners executed leases on 60 percent of the building during its ownership, generating strong risk-adjusted returns on the investment and positioning it for the right buyer – in this case, a private family.

The property is located at 560 Carlsbad Village Drive and 2975 Roosevelt Street, with entrances on both streets.

About Stos Partners

Stos Partners is a privately held commercial real estate investment and management firm that invests in real estate directly and in partnership with high net worth and institutional investors. With a track record spanning more than $350 million in investments to date, the firm targets the most competitive risk-adjusted returns in the marketplace through opportunistic acquisitions, strategic redevelopment and ground-up development of both institutional and small-to-mid-cap commercial properties in Southern California.

Headquartered in San Diego with an office in Orange County, Stos Partners’ local expertise and longstanding relationships translate into the ability to source, fund and close transactions quickly and profitably. More information is available at www.stospartners.com.