Stos Partners Just Did the Deal Everyone in the Industry Wants to Do

CJ Stos

SAN DIEGO, CA – Stos Partners, a privately held commercial real estate investment and management firm, has announced the $21 million sale of a 91,541 square-foot single-tenant industrial building in the National City submarket of San Diego, California. 
Stos acquired the asset in November of 2016 for $12.225 million, reflecting a 210% project level IRR in just 14 months.

“As an investor, this deal reflects a tremendous win, not only for our firm, but also for our buyer,” says CJ Stos. 
 “By recognizing the value in this asset from the beginning, we were able to strategically attract and secure a long-term lease with a major Fortune 500 company immediately upon acquisition, bringing the asset to 100% occupancy and delivering a solid long-term investment for the new owner.”

Jason Richards

The property was purchased by a large institution, which reflects a larger trend of institutional demand in last-mile distribution centers, according to Stos.

“Institutional buyers understand the deep value of well-located, single-tenant industrial facilities, which are perfectly positioned to serve as last-mile delivery hubs for major e-commerce companies,” says Stos. 
 “While we initially considered holding this asset for the long-term, we recognized the increasing institutional appetite for this product type, and knew that now was the right time to sell.”

The property is situated in close proximity to major freeways and ports and features approximately three acres of excess land.

During its ownership, Stos Partners drew upon its in-house management platform to implement several property improvements, including a new roof, new exterior paint, an upgraded parking lot, and new monument signage.

Anthony DeLorenzo

“Based on our strong track record and knowledge in this market, we implemented improvements that were most attractive to users, thus maximizing value," says Jason Richards, a Partner at Stos Partners. 

"By addressing the needs of the property and securing a strong credit tenant, we were able to attract interest from several buyers nationwide, and ultimately achieve a premium price for this asset.”

The property is located at 901 Bay Marina Drive in National City, California.  Anthony DeLorenzo, Matt Pourcho, and Gary Stache of CBRE represented Stos Partners as the seller in the transaction.

Matt Pourcho

    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, please contact:

Miki Akil / Jenn Quader

Brower Group

(949) 955-7940

makil@brower-group.com 

www.stospartners.com.

AMAC Acquires Mixed-Use Property in Manhattan’s Lower East Side/Two Bridges Neighborhood for $59 Million

 

10 Rutgers Street at Lower East Side and Two Bridges Neighborhood,
Midtown Manhattan, NYC

NEW YORK, NY – AMAC, a Midtown Manhattan-based real estate investment firm, has acquired 10 Rutgers Street, a mixed-used property containing 83 residential units and 7 retail spaces for $59 million in an off-market transaction.

The property is located at the intersection of the Lower East Side and Two Bridges neighborhoods in downtown Manhattan. Hudson Companies, who developed the property in 1999, was the seller.

Maurice Kaufman

“This transaction presented an attractive opportunity to acquire a corner mixed-use property in a rapidly changing neighborhood with fantastic subway access,” says Maurice Kaufman, a Founding Principal at AMAC. “Value-add investments in this submarket with this quality and scale are unique.”

The eight-story property features a unit mix of studios, one- and two-bedroom units. Amenities at the elevator building include a doorman, gym, landscaped garden, and a bike room. AMAC plans to renovate the units, common areas, and amenities. 

10 Rutgers Street is immediately adjacent to the East Broadway F Train station, which offers residents easy access to both Midtown Manhattan and Downtown Brooklyn. Seward Park, a 3.4-acre neighborhood park with basketball courts, volleyball courts, and playgrounds, is located directly across the street.

New York-based Arbor Management Acquisition Company (AMAC) is a real estate investment firm founded in 2012. Since its inception, the company has successfully acquired more than 8,000 multifamily units across the country within diverse primary and secondary markets.

AMAC is actively pursuing new investment opportunities in the multifamily sector nationwide.

 For all inquiries and leads, please contact: Info@AMACHoldings.com or visit our website at www.AMACHoldings.com

For more information on this transaction, please contact:

Bonnie Habyan
516-506-4615

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BKM Capital Partners Acquires Over One Million SF of Industrial Properties Totaling More Than $175 Million

Hughes Airport Center, 420-770 Pilot Road and 711-839 Pilot Road,
Las Vegas, NV

             LAS VEGAS, NV – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant industrial investments, has acquired $175+ million in properties through its current “largest in market” acquisition strategy. 

            The firm most recently acquired Hughes Airport Center, a 670,902 square-foot, 13-building multi-tenant industrial complex in the Las Vegas Airport submarket in Nevada.

This transaction closed on the heels of the firm’s recently announced acquisition, through its programmatic joint venture with the Canyon Catalyst Fund, of one of the largest multi-tenant industrial properties of its kind in Silicon Valley - a 14-building, 352,280 square-foot property in the Bayside Business Park in Freemont, California. Together, these acquisitions total more than a million square feet of multi-tenant industrial product.

Brian Malliet

 “Our ‘largest in market’ acquisition strategy is serving our investors well,” says Brian Malliet, Co-Founder and CEO of BKM Capital Partners. 

“By acquiring the largest multi-tenant industrial assets in the markets we serve, we are able to devise units to match market demand, which translates directly into high occupancy, resulting in strong stabilized returns for our investors. We continue to seek out light multi-tenant industrial assets throughout the Western U.S.”

Malliet notes that BKM’s most recently acquired asset - Hughes Airport Center - was acquired at a significant discount to replacement cost.

 “This is a best-in-class asset, the largest of its scale in the Las Vegas Airport submarket and our firm’s biggest transactions to date,” says Malliet. “The ability to acquire this once-in-a-decade opportunity speaks to our team’s tremendous market knowledge, local network, and expertise in the light multi-tenant industrial sector.”

Hughes Airport Center is the premier multi-tenant industrial property in the region, and is strategically positioned to benefit from ongoing growth in Las Vegas, according to Malliet.

Nima Taghavi

 “The property is poised to continue to attract strong tenant demand and serve as a last mile delivery option based on its unique position directly across from the airport and one block from the Las Vegas strip,” Malliet notes.

Situated between McCarran International Airport and the I-215 freeway, the multi-tenant industrial complex consists of 13 buildings. The complex is currently 86.6 percent leased to a diverse range of tenants across multiple industries.

“The diversification among tenants at this property limits tenant rollover exposure, which adds to the long-term value of the asset,” says Malliet.  “Further, when we were initially awarded the acquisition, the property was 79-percent occupied. 

"We signed five new leases totaling 54,738 square feet prior to close of escrow. Our ability to increase occupancy in such a short period of time demonstrates the success of our hands-on management platform, which is a key differentiator for our firm.”

BKM manages all of its assets completely in-house – a rare find in an institutional fund manager, and one that offers BKM a strategic competitive advantage, according to Brett Turner, Director of Acquisitions at BKM.

“We find distressed assets in strong growth markets where we can drive value through property improvements and integrated, in-house property management,” says Turner. “Because we are so active in Las Vegas, we will be able to immediately fix operational inefficiencies as well as invest a significant amount of new capital at the property, lease remaining vacant space, and increase NOI rapidly.”

BKM owns two multi-tenant parks in Las Vegas, providing an opportunity to amass economies of scale and drive down operating costs. The firm plans to implement a series of cosmetic interior and exterior upgrades to modernize Hughes Airport Center, such as reconfiguring dysfunctional office units into marketable industrial units totaling 27,771 square feet.

Brett Turner

“Our strategy to reconfigure this space into highly-functional multi-tenant industrial units will allow us to capture the growing demand for logistically integrated industrial assets as the demand for same day delivery continues to grow in major markets across the West,” says Turner. “In doing so, we will be able to quickly lease remaining vacant space, while steadily increasing rents as the Las Vegas market matures.”

Hughes Airport Center II is a highly functional Class A industrial complex with clear heights ranging from 16-24’, 44 dock-high loading doors, and 59 grade-level loading doors. The property is located at 420-770 Pilot Road and 711-839 Pilot Road in Las Vegas, Nevada.

BKM Capital Partners, currently raising their second institutional fund, was founded in 2013 by Brian Malliet and Nima Taghavi. Headquartered in Newport Beach, California,

For more information, please contact:

Jordan Kruk /Lexi Astfalk

Brower, Miller & Cole

(949) 955-7940

JKruk@brower-group.com

www.bkmcapitalpartners.com.