Encinitas CA— Stos Partners, a privately held commercial real estate investment firm, has expanded its Southern California portfolio with the acquisition of a 183,000 square-foot industrial warehouse in the Los Angeles County submarket of Pomona, California.
The firm purchased the asset with an institutional partner for $22.275 million in an off-market transaction. This transaction is part of over $42 million of acquisition activity for the firm over the last few weeks, according to CJ Stos, Principal at Stos Partners.
“As one of the most active buyers of value-add industrial properties in the region, we have been able to draw upon close local broker relationships to source competitive investments,” says CJ Stos, Principal at Stos Partners. “This latest acquisition is in a prime location within the Los Angeles market, situated between the Inland Empire and San Gabriel Valley, and offers immediate cash flow and long-term value creation opportunities.”
The property is 100 percent leased to a credit-backed manufacturing and distribution tenant, according to Jason Richards, Partner at Stos Partners.
“There is tremendous demand for well-located, highly functional industrial product in greater L.A. submarkets like Pomona based on limited supply and low vacancy,” explains Richards. “Utilizing our expertise in deferred maintenance and proven renovation and repositioning strategies, we will create value through substantial interior and exterior upgrades.”
The asset will eventually undergo several capital improvements including interior spec suite replacements, mechanical upgrades, a new roof, fresh paint, parking lot resurfacing, and landscaping, in order to bring rents up to market rate, notes Jay Boyle, Executive Vice President at Stos Partners.
“Strong property-level attributes make this an ideal asset for current and future industrial uses,” explains Boyle. “We are well positioned with the expertise and capabilities necessary to identify opportunities and unlock its full value potential.”
The acquisition is the most recent purchase of what has been a very active first half of 2021, notes Tanner Jansen, Vice President of Acquisitions at Stos Partners.
“We are very excited to build on this opportunity as we continue to expand into the Inland Empire,” noted Jansen. “Following two failed escrows by previous buyers, we saw value in the current improvements and were able to bring our unique experience with similar assets to confidently close on this transaction.”
The property is located at 159 North San Antonio Avenue in Pomona, California. Todd Launchbaugh of Lee & Associates represented both Stos Partners and 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 over 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.
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, capitalize and close transactions quickly and profitably. More information is available at www.stospartners.com.