Monday, January 29, 2018

Stos Partners Sells High-End Mixed-Use Carlsbad, CA Asset; Achieves 30 Percent Price Increase in 16 Months

Mixed-Use Property, 560 Carlsbad Village Drive and at 2975 Roosevelt Street,
Carlsbad Village, San Diego, CA

SAN DIEGO, CA – Stos Partners, a privately held commercial real estate investment and management firm in joint venture with a local San Diego based private equity fund, has sold a three-story, high-end mixed-use property comprised of retail, restaurant, creative office and residential space in the Carlsbad Village submarket of San Diego for $8.2 million. 

CJ Stos
The firm originally purchased the asset for $6 million in July of 2016, according to CJ Stos, Principal of Stos Partners.

“In just 16 months, we were able to build tremendous value in this exceptional property,” Stos explains.  

“By recognizing the potential in its irreplaceable location, well-amenitized office and residential units, as well as its on-site award-winning restaurant (PAON), we were able to maximize the value of each asset class, ultimately increasing NOI and creating a solid foundation for the next owner.”

The property is located at 560 Carlsbad Village Drive and at 2975 Roosevelt Street, with entrances on both streets.

Eric Wohl of Hanley Investment Group represented Stos Partners as the seller in the transaction. The property was purchased by a private family

Stos Partners executed leases on more than 60 percent of the building during its ownership, bringing the property’s office and residential units to full occupancy.  The firm also implemented improvements to the property, including new exterior paint and signage.

Jason Richards
“We are fortunate to have a strong track record of success in identifying the right properties, implementing capital improvements that make a difference, and creating true value in the properties we own,” says Stos.  

“In this case, based on our improved management and property-level upgrades, we were able to increase rents on renewals as well as new leases, and generate strong risk-adjusted returns on this investment.”

Jason Richards, a Partner at Stos Partners, notes that the property’s increases in rental income are driven by strengthening market fundamentals in Carlsbad, which are fueling increased demand for coastal retail, office and residential space.

“There is continued migration to coastal submarkets as companies and individuals realize quality of life advantages, often at more attractive costs than major markets such as downtown San Diego,” says Richards.  “We monitor these trends to seek acquisition opportunities in coastal Southern California markets with strong growth potential.”

Constructed in 2008, the property features innovative and in-demand amenities, including a 2,000 square-foot community deck with panoramic views of the Pacific Ocean, as well as office suites with concrete floors and exposed HVAC.

Eric Wohl
            The asset also features two high-end penthouse residential units in the heart of Carlsbad Village, which offer single-story, ocean-view living with private two-car garages.

            “As high-end users continue to seek walkability, luxury and accessibility in coastal living and workspace, we will continue to see high demand for these well-located mixed-use projects,” says Richards.
            Headquartered in San Diego with an office in Orange County, Stos Partners is a privately held commercial real estate investment and management firm that acquires, owns, operates and develops opportunistic commercial properties with a focus on value-add industrial and office investments.

            Led by a Principal with a track record of being one of the most active buyers of commercial real estate between 2009 – 2017 in Southern California, the firm partners with high net worth private capital and institutional investors to identify and invest in assets that are poised for strong future growth.
            Stos Partners delivers deep local expertise and longstanding relationships that translate to a unique ability to source deals quickly and profitably. 

For more information on this transaction, please contact:

Miki (Conant) Akil · Senior Account Executive
O 949 955 7940 · C 832 260 4414
Brower, Miller & Cole
The Smart Agency™ for Smart Clients who want Smart Work
895 Dove Street, Third Floor · Newport Beach, CA 92660
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