Stos Partners Trades 56,300-SF San Diego, CA Cold Storage Facility After Increasing Value by 35%

This 56,300 square-foot  cold storage industrial facility
was sold for $8.3 million in San Diego, California’s
Otay Mesa submarket.

 

CJ Stos

SAN DIEGO, CA  – Stos Partners, one of the most active commercial real estate investment and management firms in San Diego County, has announced the sale of a 56,300 square-foot cold storage industrial facility in San Diego, California’s Otay Mesa submarket.

 Stos Partners initially acquired the asset for $6.15 million in June of 2019 and was successful in bringing the property to 100% occupancy during escrow. 

Stos then implemented a value-add program that resulted in a 35% value increase, ultimately selling the property for $8.335 million to a private investor.

 “We immediately recognized the potential in this asset based on its prime location near the U.S./Mexico border and its cold storage product type,” says CJ Stos, Principal at Stos Partners.

Jay Boyle

 “Demand for cold storage facilities has grown exponentially during the COVID-19 pandemic, driven in large part by online shopping. 

Today, 46 percent of shoppers plan to continue purchasing goods online, and the value of the cold storage sector is on track to grow by $102.2 billion in the next five years, according to a recent Transwestern report.”

 The Stos team was able to build on these strong fundamentals as well as the strength of the local San Diego industrial market to create property-level value, according to Jay Boyle, Executive Vice President at Stos Partners.

Jason Richards

 “The San Diego industrial market is outperforming many others in the nation, posting its highest net absorption since 2018 in Q3 of 2020, with tightening vacancy that closed the quarter at 5.1%,” says Boyle.

 “As a seasoned investor in this community, our firm understands the nuances of the local market and maintains strong relationships with exceptional brokers and partners, allowing us to move quickly and nimbly in response to market drivers. 

"In this case, we were able to outperform our proforma yet again, resulting in a successful full-cycle investment.”

 During its ownership, Stos implemented a series of upgrades at the property including a new roof, new paint, mechanical enhancements, fresh landscaping, and other general building improvements.

Louay Alsadek

 “The vision for this project was to transform an under-used and highly in-demand cold storage facility into a performing investment, and we’ve accomplished exactly that,” Jason Richards, partner with Stos Partners, explains.

 “By expanding and extending the tenant and implementing strategic upgrades throughout the site, we were able to execute a sale that is truly a win-win, both for Stos and for the new owner.”

 The property is located at 9925 Airway Road in Otay Mesa, California. CBRE’s Louay Alsadek, Hunter Rowe, Erik Parker and Matthew Pourcho represented Stos Partners as the seller in the transaction.

Hunter Rowe

 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 approximately one-half billion in investments 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.

 Erik Parker 

 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, fund and close transactions quickly and profitably.

 More information is available at www.stospartners.com.

Contacts:

Katie Haga / Jenn Quader

Brower Group

Matthew Pourcho

(949) 438-6262

khaga@brower-group.com