Hospitality Ventures Management Group (HVMG) Names Suzanne Saunders Vice-President of Design & Construction

Suzanne Saunders

           ATLANTA, GA (Feb. 6, 2018) – Hospitality Ventures Management Group (HVMG), an Atlanta-based, private hotel investment, ownership and management company, has named Suzanne Saunders its vice-president of design & construction. 

       In her new role, Saunders will be responsible for the planning and execution of new development and renovation projects, as well as capital expense planning and execution.

            “With more than twenty-five years of experience in commercial construction management in various hospitality disciplines, Suzanne is the ideal candidate to assist HVMG as we pursue additional hotel development opportunities,” said Richard Jones, senior vice president and chief operating officer, HVMG.
 

Richard Jones

      “HVMG has a robust pipeline of design and construction projects, and I am confident Suzanne will be instrumental in leading HVMG’s efforts with our renovation and new development projects.”

            Prior to joining HVMG, Saunders spent more than a decade with Hyatt Hotels & Resorts, most recently serving as regional vice-president, project services/design and planning – Americas.  During her tenure there, she oversaw the development and growth for all franchised Hyatt Place and Hyatt House Hotels and all owned properties throughout the Americas. 

     She has held a number of commercial construction management positions throughout the years, including senior construction manager for Panera Bread, LLC, construction manager with Jack-in-the-Box Restaurants and senior project manager with Hilton Corporation. 

  Saunders received her Bachelor of Science degree in Industrial Technology from Lamar University.

For more information, please contact:

Chris Daly,

Main: 703-435-6293

Mobile: 703-864-5553

 chris@dalygray.com

www.dalygray.com

PRESIDENT

DALY GRAY PUBLIC RELATIONS, INC.

620 Herndon Parkway, Suite 115 | Herndon, VA 20170

 www.hvmg.com

Real Estate Capital Institute Notes Mortgage Rates Starting to Rise

John Oharenko

Chicago, IL - Benchmark rates hit a three-year high this week, as investors track Fed monetary moves in the face of new government spending needs and worldwide economic growth. 

Following this trendline, mortgage rates are on the rise, although not at full parity. Property owners can expect to see the following underwriting trends over the

coming months:

Active Rate Management: Low rates are no longer taken for granted, and simply capturing cheap debt is becoming more difficult. With short and long-term rates rising, hedging and other interest-rate protection strategies are resurfacing. Moreover, creative lenders offer options such as float-to-fix loans (or vice versa) for greater optionality, if borrowers feel compelled to lock into fixed rates due to increased pricing concerns, or alternatively need to reorganize loans to avoid incurring prepayment penalties associated with fixed-rate debt (usually necessary, if an asset

sale is planned in the near future).

Tighter Spreads: The trade-off of lower rates for lower leverage benefits

borrowers targeting the best pricing. Even as benchmark rates climbed over

thirty basis points within the month, lenders absorbed spreads to keep loan

production fluid. Mortgage rates are only five to fifteen basis points

higher, as a net result.

Debt Service Coverage: Lower leverage loans are the norm in comparison to

historical levels. As prices rise for premier properties, borrowers are

forced to accept less proceeds since debt service coverage supersedes

loan-to-value limits as a key underwriting variable in these cases. High

prices directly translate to higher equity contributions, in exchange for

favorable debt terms. For best pricing, 65% LTV or less are commonplace,

often based upon 1.40X or more debt service coverage.

Mr. John Oharenko, director of the Real Estate Capital Institute(r) ,

advises, "Borrowers are definitely paying attention to higher rates, after

enjoying extremely low rates for a several years. As rates gradually rise,

sellers and buyers will realign their expectations, but at a slower,

wait-and-see pace."

For more information, please contact:

Jeanne Peck, Executive Director

director@reci.com

www.reci.com

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

.

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. 

The Keyes Company Acquires Rickenback Realty in Aventura, FL

From left:  Keyes Senior Vice President Steve Reibel, Rickenback Realty Founder Eric Rickenback, Keyes Vice President Tim Pappas and Keyes Aventura District Sales Manager Marco Zarfati

Aventura, FL. – The Keyes Company has announced the acquisition of the Aventura-based real estate firm Rickenback Realty, Inc. This marks the fifth brokerage acquired by Keyes and its Family of Companies in the last five months and the second in Aventura following the August 2017 acquisition of Shorewood Real Estate. 

Led by President and Managing Broker Eric Rickenback and Co-Founder Harriet Rickenback and operating for more than three decades, Rickenback Realty successfully lists for sale and rental homes and condominiums throughout South Florida. The firm has 25 agents and generated more than $25 million in transaction volume in 2017.

Rickenback is merging with the Keyes Aventura office located at 2822 NE 187 St. Keyes has separately announced the appointment of Marco Zarfati as new District Manager of the Aventura office. Zarfati has been with Keyes for 18 years.

Marco Zarfati

“The addition of Rickenback and the firm’s talented agents to our family is an exciting development,” said Keyes CEO Mike Pappas. “It is a fantastic strategic fit that further boosts our recent growth in Aventura. We continue to pursue the right expansion opportunities throughout South Florida, the Keys and the Treasure Coast.”

A longtime supporter of animal rescue initiatives, Eric and Harriet Rickenback started nonprofit organization Shih Tzu Rescue in 1995. The organization operates a three-acre kennel in Davie and has rescued, rehabbed and adopted more than 3,000 abused and abandoned dogs of various breeds.

Earlier this month, Keyes announced the acquisition of Boynton Beach-based real estate firm The Realty Pros, which has 43 agents who specialize in Palm Beach County residential properties.

Through these acquisitions, the agents involved are able to take advantage of the resources, technology, marketing, leadership and independent nature of Keyes as they promote their properties and enjoy increased sales and listing opportunities.

Independently-owned and operated since its founding in 1926, Keyes is extremely active in all segments of residential real estate. In 2017, Keyes generated more than $6 billion in real estate services across its Family of Companies.

The Keyes Family of Companies is the largest independently-owned real estate firm in Florida and a Top 25-ranked firm in the entire United States.

For more information, please contact:

Eric Kalis

Account Director, BoardroomPR

ekalis@boardroompr.com

O 954-370-8999

C 305-794-5123

Bank of America Plaza | 1776 N Pine Island Road

Suite 320 | Fort Lauderdale, FL 33322

Web | Facebook | LinkedIn | Twitter | Instagram

Levin Johnston Sells Santa Clara, CA Multifamily Community for Record Price of $456,250 Per Unit

Velocity at Lawrence Station Apartments, 3488 and 3508-3518 Agate Drive, Santa Clara, CA

            SANTA CLARA, CA – Levin Johnston, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, has directed the record-breaking price per unit sale of Velocity at Lawrence Station, which sold for $456,250 per unit, or a total of $25,550,000, on behalf of the seller, Old Adobe Management Company.

Robert Johnston

            “This is the ultimate example of a successful full-cycle investment,” says Robert Johnston, Senior Vice President of Levin Johnston.

“The Levin Johnston team assisted Old Adobe Management Company in acquiring this 56-unit property in February of 2015 for $14,250,000.

After extensive strategic renovations, the property’s value increased exponentially, enabling us to achieve a per-unit sale price that is the highest in the history of Santa Clara for a community with more than 10 units, according to CoStar.”

            Large-scale renovations were performed on both the interior and exterior of the property, including new roofing, upgraded plumbing including copper risers and sewer lines, and brand new electrical wiring in every unit.

The property also features all-new, drought-resistant landscaping, as well as brand new carports and newly upgraded common areas with barbeques. In-unit amenities were substantially upgraded, including high-end, designer finishes such as quartz countertops and modern paint schemes, as well as new dishwashers and the addition of washers and dryers in every unit.

“This level of upgrades is nearly unheard of in today’s market, and speaks to the commitment and expertise of the seller,” states Adam Levin, Senior Managing Director of Levin Johnston. “By investing in the amenities that matter most to tenants, Old Adobe Management Company was able to enhance the value and lifespan of the property for future owners, while substantially increasing their return on investment.”

            The asset is located in the heart of Silicon Valley, which boasts high multifamily occupancy rates and strong employment fundamentals.

Adam Levin

“The Bay Area market is characterized by its outstanding employment rates, and Santa Clara’s fundamentals are on trend,” notes Levin. 

“Unemployment in Santa Clara recently dropped to 2.6%, fueling continued strong demand in the local multifamily sector. This tenant demand continues to drive increased investor interest, enabling us to achieve strong returns for our Client through this sale.”

            The property is located in walking distance to Lawrence Station Caltrain, which offers a short 10- to 20-minute commute to Mountain View, Palo Alto, Menlo Park and other nearby hubs for major employers such as LinkedIn, Intel, Facebook, Apple, Yahoo! and Google.

            Velocity at Lawrence Station was acquired by a private owner. The property is located at 3488 and 3508-3518 Agate Drive in Santa Clara, California.

Levin Johnston is one of the top multifamily brokerage teams in the U.S. specializing in wealth management through multifamily and commercial real estate investments.

With a focus on growing and sustaining wealth for each and every Client, the Levin Johnston team is expert in investment sales and acquisitions, value-driven asset management, 1031 exchanges, and ongoing advisory services.

 Since its inception, Levin Johnston has directed more than $2 Billion in transactions, resulting in stable risk-adjusted returns for investors throughout the U.S. Levin Johnston is part of Marcus & Millichap’s Palo Alto office.

For more information, please contact:

Jordan Kruk,  Account Coordinator

Jenn Quader ·

JKruk@browermillercole.com

O 949 955 7940

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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NAI Realvest Closes Six New Leases in 60 Days at South Park Business Center in Orlando, FL

Tom R. Kelley II

ORLANDO, Fla. – NAI Realvest completed six new office-industrial leases from mid-November to mid-January for office and industrial space totaling 13,391 rentable square feet at Orlando’s South Park Business Center, 8600 Commodity Circle. 

Tom R. Kelley, II, CCIM, principal NAI Realvest, brokered the transactions on behalf of the Miami-based landlord South Park, LLC.   New tenants and the space leased include:

Digital CM a security firm that provides custom designed systems leased 3,531 square feet; Total Life America, LLC a health supplement provider leased 1,830 square feet; Madrona Concepts, a golfing products distributor based in Belleue, WA leased 1,830 square feet;

Brokeit Company, an electronics repair firm leased 2,094 square feet; Transfirst Media, Inc. a multimedia firm servicing the tourism industry leased 4,106 square feet; and

Sakur International Inc., a women’s fashion products company leased 1,830 square feet.

For more information, please contact:

Beth Payan, Larry Vershel Communications, 407-644-4142 Lvershelco@aol.com.

    

Continental Partners Secures $38.1 Million in Financing for Four Multifamily Transactions in Los Angeles, CA

Zalmi Klyne

LOS ANGELES, CA– Commercial real estate investment banking firm Continental Partners has secured $38.1 million in financing for four transactions, encompassing 12 properties totaling 210 units, in Los Angeles, California. The financing for all four deals was arranged by Continental Partners Executive Vice President Zalmi Klyne.

“Multifamily remains one of the most in-demand product types,” says Klyne. “However, as the cycle matures, many lenders have become more conservative in their underwriting, especially in regions with high development pipelines. This is driving investors to emerging submarkets where oversupply in less of a concern.”

According to Klyne, multifamily investment activity in LA’s emerging submarkets continues to grow as residents and investors look for more cost-effective options in close range to urban centers.

“All of these properties are all located in growing LA submarkets where demand is continuing to outpace supply,” explains Klyne. “We were able to successfully arrange competitive financing for all four sponsors by leveraging our capital relationships, getting the lenders comfortable with the properties’ respective submarkets, and implementing creative solutions to finance these deals.”

For more information, please contact:

Elisabeth Manville · Account Executive 

emanville@browermillercole.com

O 949 955 7940 · C 949 584 4046

Brower, Miller & Cole
The Smart Agency™ for Smart Clients who want Smart Work
895 Dove Street, Third Floor · Newport Beach, CA 92660

Website · Facebook · Twitter · Instagram

Hold-Thyssen Completes Long Term Lease with Major Tenant at Axiom Bank Building in Maitland Center, Maitland, FL

Darby Hold

MAITLAND, FL --- Hold-Thyssen, a full service real estate services firm recently negotiated a three-year lease agreement for 3,718 square feet of Class A office space in the Axiom Bank Building at 258 Southhall Lane in Maitland Center.  

Darby Hold, associate for Hold-Thyssen, Inc. negotiated the transaction representing the landlord, Axiom Bank.

,

Axiom Bank Building, 258 Southall Lane, Maitland Center,
Maitland, FL

Wilson Learning Corporation, a recognized leader in the performance improvement industry and a major tenant at the Axiom Bank Building for 13 years, extended its lease for three years beginning in January. 

Hold-Thyssen, Inc., headquartered in Winter Park, Florida provides commercial property brokerage and leasing and management services to institutional and private investor clients nationwide.  The 40-year old firm’s current portfolio includes more that 100 commercial properties throughout the United States.

For more information, please contact,

Larry Vershel or Beth Payan, Larry Vershel Communications Inc. 407-644-4142 Lvershelco@aol.com.

Proper Title, LLC Adds Neil F. Narut, Esq. as Senior Underwriting Counsel

Neil F. Narut

CHICAGO, IL (Jan. 30, 2018) – Palatine, Ill.-based Proper Title, LLC, a full-service title insurance agency serving the residential and commercial real estate industries, announced it has hired Neil F. Narut, Esq., as senior underwriting counsel.

“We are very fortunate to have someone with Neil’s background and outstanding reputation in the industry join Proper Title,” said David Garside, executive vice president of title and escrow operations at Proper Title. “He brings exceptional expertise in real estate law and understanding the attorney’s role in transactions that aligns perfectly with our goal to provide the best possible customer experience at the closing table.”

Most recently with Chicago Title, Narut has more than two decades of experience in real estate and land title insurance legal matters, concentrated in commercial and residential real estate transactions, REO, title curative, and foreclosure of mortgage default and mechanic’s lien cases.

 According to Narut, his approach to underwriting balances the necessary underwriting standards while applying pragmatic and practical solutions to complex title issues for attorneys and their clients.

“I fully understand, having practiced law, the real estate attorney’s mission to provide the highest level of service to clients and referring realtors,” said Narut. “Proper Title has assembled a spectacular team of experienced title professionals unmatched by any other company in the Chicago area. This is the exact company I would want to work with as a practicing attorney-agent.”

David Garside

A graduate of Loyola University - Chicago and The John Marshall Law School, Narut frequently speaks at continuing education and bar-related functions, and was selected to the Fidelity Underwriter Leadership Program.

Launched with just 27 employees in 2013, Proper Title has doubled its size and increased its transaction volume every year to become a major player in the title insurance business.

It earned the 2016 Award for Excellence from Fidelity National Title Group, Inc., a member of the Fidelity National Financial (NYSE: FNF) family of companies and the nation’s largest group of title companies and title insurance underwriters. The award is given for meeting and exceeding specific title underwriting and settlement services criteria.

For more information, please contact:

 Traci Failla,

tfailla@taylorjohnson.com,

 (312) 267-4516.

 www.propertitle.com

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

Website · Facebook · Twitter · Instagram

www.stospartners.com.