Stos Partners Buys Rare San Diego Industrial Asset

By Mihaela Coste

1670-1690 Brandywine Ave., Chula Vista, Calif.

Stos Partners acquired a 170,805-square-foot complex comprising two multi-tenant industrial buildings in Chula Vista, Calif. The property traded off-market for $13.5 million.

Michael Mossmer, senior vice president of Voit Real Estate Services, represented the buyer, as well as the seller, a private family.

Located at 1670-1690 Brandywine Ave., the assets benefit from immediate access to Interstate 805. The properties feature a fire sprinkler system, heavy power, dock-high and grade-level loading doors, and the clear heights range between 22 and 26 feet.

Occupancy and Tenure Mix

At the time of the transaction, the property was 100 percent occupied by a mix of local and national credit tenants in various industries, such as manufacturing, medical supply and distribution, as well as defense.

The submarket is benefitting from exceptionally tight, 1-2 percent vacancy in neighboring National City, which is driving tenants to Chula Vista: “As industrial vacancy continues its downward trend throughout San Diego, submarkets like Chula Vista will continue to experience strong tenant demand, which will in turn drive value for investors,” said CJ Stos, principal of Stos Partners, in a prepared statement.

“Multi-tenant industrial remains the gem of the industrial investment sector, and is exceptionally hard to find in today’s supply-constrained market,” added Stos. “By working closely with our broker to source this deal off-market, we were able to acquire the asset 50 percent below replacement cost, and now have a tremendous opportunity to create and maintain value.”

 Improvement Plans

The new owner plans significant upgrades to the property, including new landscaping, exterior paint, signage and roofs, as well as an updated parking lot.

“By implementing strategic improvements, refreshing the image of the property, and steadily pushing rents to market rates upon lease rollover, we will be able to significantly increase NOI and build significant value,” said Jason Richards, partner at Stos.

Headquartered in San Diego, Stos Partners owns, operates and develops opportunistic commercial properties with a focus on value-add industrial and office investments. The company recently closed two transactions in Southern California: the acquisition of two office properties in Encinitas and San Dimas for $7 million and the sale of an industrial asset in Rowland Heights for $6.6 million.

Image courtesy of Stos Partners