SAN DIEGO, CA (March 11, 2014) – SR Commercial has acquired
an industrial portfolio in Vista, Calif. consisting of four buildings totaling
168,013 square feet, as well as a 1.43 acre developable land parcel.
The company plans to develop a new, 30,000 square-foot
addition on the land parcel, which will be the first speculative construction
in Vista in three years, according to Adam Robinson, a Principal at SR
Commercial.
“This $15.2 million acquisition presents a tremendous
opportunity to add value through repositioning a portfolio that is perfectly
aligned with our ongoing investment strategy,” says Robinson, who founded SR
Commercial along with partner CJ Stos.
“After implementing any needed improvements, we anticipate
selling two of the buildings to industrial users, and holding the remaining two
buildings as long-term assets.”
SR Commercial has acquired over a million square feet during
the past two and a half years, and has both institutional and private equity
partners in place, which expands its buying power and enables the firm to seek
out larger deals throughout Southern California, according to Robinson.
“When we invest with private equity partners, we have the
capability of utilizing the kind of strategy we are employing on this
acquisition, which is to deliver an asset management strategy including
decreasing our basis through selling part of the portfolio, increasing the
remaining asset value through rehabilitation, development of additional
square-footage, and the deployment of a tactical marketing and leasing/sales
program.
“We have also been able to underwrite assets for a 15-plus
year hold, which is somewhat unique as compared to many of our competitors,”
Robinson explains.
“Alternately, our firm is equally able to devise a
short-term value-add strategy when working with our institutional partners, who
require a much shorter horizon in order to meet their needs,” he adds.
The four building industrial portfolio acquired by SR Commercial is currently 79 percent occupied,
and is comprised of two single-tenant buildings, located at 2641 La Mirada
Drive and 1385 Park Center Drive; as well as two multi-tenant buildings,
located at 2651 La Mirada Drive and 1125 Joshua Way.
1385 Park Center Drive is currently 100 percent occupied by
Glacier Water Technologies, while beauty company Creative Nail Design occupies
more than half of the Joshua Way building, which was originally a build-to-suit
for Creative Nail Design.
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| Adam Robinson |
Adjacent to the Joshua Way building is the land parcel, on
which SR Commercial will construct an additional 30,000 square-foot high-bay
distribution space that will be divisible with grade and dock-level loading.
“In Vista, there is a very limited supply of quality product
with visible street presence, clear height, easily accessible loading, and
proper ingress and egress,” notes CJ Stos, a Principal and Co-Founder of SR
Commercial.
“Our new development at Joshua Way will fill a void in the market
for new, more functional and more visible industrial space in this size
category.”
“We plan to
aggressively market the buildings for sale or lease, and have already received
inquiries on the property from industrial users interested in both acquisitions
and leasing,” notes Stos. “Demand for
this product is extremely high in the market.”
"In February of 2012, we acquired a similar building in
Vista, and were able to lease the property in less than three months,” he adds.
“Our success in leasing is a direct result of our strong relationships with
local brokers. We anticipate that
leasing for this property will also be completed very rapidly.”
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| CJ Stos |
SR Commercial was represented by Barry Hendler, Rick
Reeder and Brad Tecca of Cassidy Turley in the acquisition.
SR Commercial is a privately held, full-service commercial
real estate investment company, which acquires, owns and develops
income-producing industrial and office properties. The firm’s two Principals include Adam S. Robinson, CPM,
CCIM, SIOR, and CJ Stos, MRED.
As an active commercial real estate operator with a
well-established reputation as a value-added investor, SR Commercial focuses on
real estate opportunities that are inefficiently priced due to a variety of
circumstances.
These include vacancies, rollover risk, sub-optimal
management, inefficient current use, deferred maintenance, long-term
undervalued leases or other unfavorable property and market conditions.
With its corporate office in San Diego and the Principals'
close ties to Orange County and Los Angeles County, SR Commercial has
positioned itself to become one of the leading real estate investment companies
in its respective markets.
In addition to owned
real estate, the firm provides third-party management for more 5 million square
feet of industrial, office, and retail properties.
For a complete copy of the company’s news release, please
contact:
Amanda Alenick/ Jenn Quader
Brower, Miller &
Cole
(949) 955-7940
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