Stos Partners Just Did the Deal Everyone in the Industry Wants to Do
February 1, 2018— Stos Partners, a privately held commercial real estate investment and management firm, has announced the $21 million sale of a 91,541 square-foot single-tenant industrial building in the National City submarket of San Diego, California. Stos acquired the asset in November of 2016 for $12.225 million, reflecting a 210% project level IRR in just 14 months.
“As an investor, this deal reflects a tremendous win, not only for our firm, but also for our buyer,” says Stos. “By recognizing the value in this asset from the beginning, we were able to strategically attract and secure a long-term lease with a major Fortune 500 company immediately upon acquisition, bringing the asset to 100% occupancy and delivering a solid long-term investment for the new owner.”
The property was purchased by a large institution, which reflects a larger trend of institutional demand in last-mile distribution centers, according to Stos.
“INSTITUTIONAL BUYERS UNDERSTAND THE DEEP VALUE OF WELL-LOCATED, SINGLE-TENANT INDUSTRIAL FACILITIES, WHICH ARE PERFECTLY POSITIONED TO SERVE AS LAST-MILE DELIVERY HUBS FOR MAJOR E-COMMERCE COMPANIES,” SAYS STOS.
“While we initially considered holding this asset for the long-term, we recognized the increasing institutional appetite for this product type, and knew that now was the right time to sell.”
The property is situated in close proximity to major freeways and ports and features approximately three acres of excess land.
During its ownership, Stos Partners drew upon its in-house management platform to implement several property improvements, including a new roof, new exterior paint, an upgraded parking lot, and new monument signage.
“Based on our strong track record and knowledge in this market, we implemented improvements that were most attractive to users, thus maximizing value,” says Jason Richards, a Partner at Stos Partners. “By addressing the needs of the property and securing a strong credit tenant, we were able to attract interest from several buyers nationwide, and ultimately achieve a premium price for this asset.”
The property is located at 901 Bay Marina Drive in National City, California. Anthony DeLorenzo, Matt Pourcho, and Gary Stache of CBRE represented Stos Partners as the seller in the transaction.
Article source: Blau Journal