Encinitas CA— Stos Partners, a privately held commercial real estate investment and management firm, has sold a 27,500 square-foot industrial asset in Miramar, California to a private investor.
“Our firm has been extremely active in 2020 and will remain focused on the successful execution of our existing portfolio and sourcing new deals,” according to CJ Stos, Principal at Stos Partners.
“As one of the more active investors in Southern California, both as a buyer and a seller, we continue to pay close attention to the market in order to position our assets for success, even in the midst of the COVID-19 pandemic,” says Stos. “Our team has been able to navigate these relatively choppy market conditions and make informed decisions that increase our ability to successfully execute.”
Stos Partners initially acquired the vacant asset in July of 2019 with Long Wharf Capital and they were able to reposition, lease up, and sell the property at a profit within a relatively short timeframe.
“The key value-add factor in this transaction was the rapid lease-up to 100% occupancy, which we accomplished in just four months from taking ownership,” says Jay Boyle, Executive Vice President at Stos Partners. “As an owner of 14 buildings in the Miramar submarket alone, we understood the potential in this property from the beginning. This vision enabled our team to implement our business plan and exceed our proforma, ultimately delivering a strong return to our capital partner with this sale.”
Stos initially acquired the property in a joint venture with Boston-based private equity firm Long Wharf Capital for $4.2 million. After implementing strategic upgrades including new landscape, a new parking lot, new roof, exterior building paint and office interior improvements, the partnership sold the asset for $7.525 million.
“This sale speaks to our expertise in acquisitions and execution, and to the depth of our broker relationships, through which we were able to identify this ‘diamond in the rough’ asset and complete its strategic lease-up and sale,” says Jason Richards, partner with Stos Partners. “The transaction also reflects continued demand in the industrial sector, buoyed by strong local fundamentals and sustained demand from both national and regional users.”
“Stos Partners continues to be bullish on industrial, and we are actively seeking additional acquisition opportunities in Southern California and other select markets,” says Stos. “As seasoned owners with more than six million square feet acquired and three million square feet in assets under management, our portfolio is well-positioned to withstand current economic headwinds and deliver long-term value to our tenants and partners.”
The property is located 8330 Arjons Drive in Miramar, California. Bryce Aberg, Brant Aberg and Brooks Campbell of Cushman and Wakefield represented Stos Partners as the seller in the transaction.
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 six hundred 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.
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.
About Long Wharf Capital
Long Wharf Capital LLC is a Boston-based private equity real estate manager focused exclusively on value-added investments in the U.S. Formed in 2011, the firm invests on behalf of institutional clients including pension funds, endowments, foundations, and family offices. Long Wharf’s investment approach utilizes multiple value creation strategies to target opportunities across property sectors and U.S. markets. Since Long Wharf’s first fund in 2012, the team has invested over $768 million of equity in more than 50 investments across the U.S. with a gross value of $2.6 billion. For further information, visit: www.longwharf.com.