HG CAPITAL AND SR COMMERCIAL LEASE BUILDING TO AMAZON, INC.
HG Capital and its operating partner, SR Commercial, recently leased a newly renovated industrial building to Amazon, Inc. Located in Central San Diego, the property offers excellent access to downtown, Point Loma, the airport, and both Interstate 5 and Interstate 8, making the 84,000 square foot property ideal for an e-retailer. The greater surrounding 14.5 million square foot industrial flex market continues to be strong, with no vacancy for industrial buildings over 20,000 square feet.
HG Capital and SR Commercial purchased the vacant building with deferred maintenance in 2013 and immediately commenced improvements to the property. Upgrades included a new exterior façade, addition of windows, improvements to the roof, and recoating of the parking lot. The renovated property was completed in 2015 and received immediate interest from tenants in the market. Amazon, Inc. took occupancy in November of 2015. “We are pleased that Amazon saw the same value that we did in the central location of the building,” says Andrew Jobst, Partner at HG Capital.
This was HG Capital’s second investment with the local operating partner. HG Capital’s established relationship with SR Commercial made this successful investment possible.
About HG Capital
HG Capital is a privately held real estate investment firm providing capital to experienced operating partners. The firm invests in real estate assets primarily through joint venture equity. These investments range broadly across real estate sectors and business plans. They include the acquisition, repositioning, development, and recapitalization of both commercial and residential projects. The HG Capital funds are fully discretionary, with the firm’s principals directing all investment initiatives. The firm has a proven track record of providing capital for nearly 100 investments to support the acquisition and development of assets with an aggregate completed value in excess of $1.8 billion.
About SR Commercial
SR Commercial is aggressively seeking investment opportunities in single or multi-tenant industrial and office product types in Southern California to further expand its portfolio. SRC has closed 38 acquisitions in the last 53 months with a total capitalization of approximately $295 million. As a private investment company, we have the ability to move quickly to underwrite, approve and close on any transaction that fits our investment parameters. While we prefer class A or B infill product, we do not shy away from opportunities which require some element of risk in lease-up, capital improvements, repositioning, or redevelopment, as well as vacant properties and properties that are no longer competitive due to poor maintenance or functional obsolescence. We will protect brokers on any and all submittals, including buyer side payment of fees, if required.
Article source: The Registry SF