Carlsbad CA—Stos Partners, a privately held commercial real estate investment firm, has sold a 22,156 square-foot multi-tenant R&D in the San Diego County submarket of Carlsbad, California after completing renovations and bringing the asset to full occupancy within just 18 months.
The firm initially acquired the asset in September 2019 in a sale-leaseback transaction, according to CJ Stos, Principal of Stos Partners.
“Upon acquisition of this property, we leased approximately 85% of the space back to the seller, Professional Rugby team San Diego Legion,” says Stos. “This provided us with immediate cashflow as we implemented our strategic renovation plan to upgrade the asset, which included new landscaping, fresh paint, and modern interior office improvements.”
Stos notes that the firm ultimately secured a national credit tenant, Sierra Wireless, to occupy the remaining 4,700 square feet of ground-floor office space, despite COVID-19’s impacts on the sector.
According to Jason Richards, Partner at Stos Partners, expertise in carrying out strategic and cost-effective capital improvements allowed the firm to deliver competitive office space to the market.
“Once the pandemic hit, our team immediately improved the vacant office portion,” explains Richards. “We were able to offer the lowest cost in Carlsbad for space of that caliber, which ultimately attracted interest from several potential tenants, even with more than 90 available spaces on the market in that size range.”
Jay Boyle, Executive Vice President at Stos Partners, affirms: “This sale speaks to our capabilities in acquisitions and execution, as well as to the depth of our broker relationships, through which we were able to identify this value-add opportunity, implement strategic upgrades, and secure a reliable tenant in the midst of unexpected circumstances.”
The property, which was purchased for $3.78 million and sold for a total consideration of $5.24 million, is located at 5816 Dryden Place in Carlsbad, California. Matt Pourcho of CBRE represented Stos Partners as the seller in the transaction. Fred Aframian of CBRE represented the buyer 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 approximately one billion in transactions 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.