Stos Partners Sells LA County Industrial Asset for $46M

159 N. San Antonio Ave. Image courtesy of Stos Partners

EverWest Advisors, of Denver, has acquired a 182,275-square-foot industrial building in Los Angeles County’s San Gabriel Valley for $45.9 million, Cushman & Wakefield announced on Sept. 23.

The seller was Stos Partners, of San Diego, which reportedly paid $21 million for the asset in July 2021.

The property is on an 8.5-acre infill site at 159 N. San Antonio Ave. in Pomona, Calif., and is fully occupied by a single tenant. Based on information from CommercialEdge, the tenant appears to be Pregis, a Chicago-headquartered packaging manufacturer.

The Class C property was completed in 1952, also according to CommercialEdge, and reportedly was renovated in the 1970s.

It features 7,200 square feet of office space, 18 dock- and 12 grade-level doors, clear heights ranging from 19 to 21 feet, and 82 parking spaces.

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The property is near the I-10 freeway and is served by the Union Pacific Railroad.

CJ Stos, a principal at Stos Partners, said in a prepared statement that the firm leveraged its close relationships with local brokers to acquire this asset in 2021. “Upon a successful year of ownership, we were able to capitalize on the strong market demand for industrial space in Los Angeles County and secure a premium sale price for this property,” he said.

Jason Richards, a partner at Stos Partners, added that tenants have been quick to renew leases and secure their spot in the tight Los Angeles market, making the asset especially desirable for investors.

Bryce Aberg, Jeff Chiate, Jeff Cole, Mike Adey and Zach Harman of Cushman & Wakefield’s National Industrial Advisory Group advised the seller.

Tight market

The San Gabriel Valley industrial market enjoys an overall vacancy of less than 1 percent, according to a second-quarter report from Cushman & Wakefield. This submarket also accounted for the largest share of industrial leasing activity in the second quarter in Greater Los Angeles (which excludes the Inland Empire), with 1.2 million square feet, or 25 percent of the market total.

In April, Everwest Real Estate Investors and Invesco Real Estate secured $101.3 million in financing to refinance and finish construction of 25 North, an industrial complex in the Denver suburb of Thornton, Colo. JLL Capital Markets placed the 36-month, floating-rate, non-recourse loan with a multinational bank.