This sale brings Stos Partners’ transaction activity to nearly $100M so far this year
Stos Partners, a privately held commercial real estate investment and management firm, has sold a 65,300 square-foot industrial asset in Temecula, California for $10.4 million. The property was sold to an Orange County-based private investor in an off-market transaction.
According to Principal at Stos Partners, CJ Stos, the firm has remained extremely active despite the current environment. Stos Partners has closed nearly $100 million in transactions since January of this year, including three deals that were completed within the last six weeks.
“We are one of the most active investors in Southern California,” says Stos. “We are extremely well-capitalized and have an exceptionally deep understanding of these local markets so we are able to move and act quickly to get deals done.”
Stos Partners initially acquired the asset in April of 2019, repositioning and selling the asset in approximately one year.
“We initially acquired the asset for $7.1 million, quickly implementing a series of upgrades and improvements to the property,” says Jay Boyle, Executive Vice President at Stos Partners. “This allowed us to quickly lease up the property, bringing it to full occupancy with long-term leases in-place within the first month of ownership. This ultimately attracted a lot of buyer attention, which created the opportunity to sell the asset for a premium one year later.”
At the time of acquisition, the building was 47% occupied by a publicly-traded international consumer goods and farm products company in a sale-lease back transaction. During escrow, Stos Partners was able to attract an additional tenant to occupy the remaining 53% of the building.
“Because of our deep expertise within the local market, we were able to negotiate a lease with Habitat for Humanity to lease the remaining vacant space at the building on a long-term lease. This significantly increased cash flow and enhanced the overall value of the property,” he explains. “This sale speaks to our strength in identifying assets with strong value potential, executing on our business plan, and bringing an asset to market that is highly sought after by tenants and buyers even in the current environment. As a result, we were able to deliver returns that exceeded investor expectations.”
The property is located 28410 Vincent Moraga Drive in Temecula, California. Rob Gunnes, Anthony DeLorenzo and Matt Pourcho of CBRE represented Stos Partners as the seller in the transaction. Tucker Hohenstein and Mike Erwin of Colliers International represented the buyer, a private investor.
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 over one-half billion 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.
Headquartered in San Diego, California with an office in Orange County, California and Laredo, Texas, 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.