Saturday, April 2, 2016

Newly Formed RAF Pacifica Group Acquires 277,040 square-foot Industrial Portfolio in San Diego County, CA

Adam Robinson

 SAN DIEGO, CA – Newly formed RAF Pacifica Group has acquired a 277,040 square-foot portfolio consisting of 16 individual buildings throughout six multi-tenant industrial business parks in San Diego County. 

The acquisition price was not disclosed.  The firm secured a $19.6 million loan at 50 percent leverage for the acquisition.  All buildings are 100 percent occupied.

“This portfolio is a rare find in the market,” explains Adam Robinson, Principal of RAF Pacifica Group. “The current market for quality industrial products is extremely competitive in the San Diego area. RAF Pacifica Group, however, was able to secure six quality, tenant-diversified, full-occupancy multi-tenant business parks in San Diego County.

“This first acquisition is a testament to our firm’s strong relationships with local brokers, as well as our expertise in this market, both of which are essential to acquiring this product type.”

The Portfolio

            The acquisition consists of six fully-occupied projects with a total of 87 tenants.  The six projects included in the portfolio are Carroll Way Industrial Park, Rancho Pacifica Business Center, Sorrento Mesa Commerce Center, Enterprise Business Center, Oceanside Business Park I and Oceanside Business Park II.

CJ Stos
            RAF Pacifica Group purchased four of the six projects from a private international real estate investment firm, and the remaining two projects – Oceanside Business Parks I & II – from a private owner.  CJ Stos of Stos Partners is a partner with RAF Pacifica Group in the transaction.

Based on each project’s multi-tenant structure, excellent location and range of unit sizes, RAF Pacifica Group views the portfolio as a cash-flow, low-risk asset and anticipates long-term ownership of these properties. 

In addition, RAF Pacifica Group plans to draw upon its expertise in asset renovation and repositioning in order to implement exterior and interior enhancements that will enable the firm to increase current tenant rents to market rate, according to Robinson.

            “Maintaining high occupancy was the primary objective of the prior owners,” explains Robinson. “RAF Pacifica Group views its long-term hold assets with a long-term vision, however, and sees a strategic opportunity in this portfolio to create value upon tenant roll over. 

"We want to ensure that our assets are well-positioned for the future, and we plan to make as-needed improvements that will drive high yields.”

Lori Wendel
            Robinson notes that this portfolio is the perfect first investment for RAF Pacifica Group, providing the firm with the opportunity to implement and grow its business strategy, which focuses on acquiring, renovating and growing a pipeline of industrial, flex and office assets, as well as developing new product in Southern California.

Brokers involved in facilitating this portfolio transaction for RAF Pacifica Group include:

·         Randy LaChance, SIOR, a Senior Vice President with Voit Real Estate Services
·         Bob Willingham, SIOR, a Senior Vice President and Partner with Kidder Matthews
·         John Witherall, an Associate Vice President with Colliers International
·         Josh McFadyen, a Senior Vice President with Colliers International
·         Joe Crotty, a Senior Vice President with Colliers International

 James Ruiz and Lori Wendel with Keystone Mortgage Corporation provided acquisition financing to RAF Pacifica Group.

For a complete copy of the company’s news release, please contact:

Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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