LOS ANGELES, Calif. – Stos Partners, one of the most active commercial real estate investment and management firms in Southern California, has acquired two prime industrial assets totaling more than 41,000 square feet in the prime La Mirada and San Fernando submarkets of Los Angeles, California for more than $12 million cumulatively.
“We recognized the strong potential these markets can deliver to users seeking well-located spaces with amenities that cater to their needs,” says CJ Stos, Principal of Stos Partners.
“Competition for industrial space continues to grow rapidly throughout the nation, especially in key markets like Los Angeles. This can be attributed to an increasing lack of available properties and a growing number of tenants looking to perfect their logistical channels.”
Due to the scarcity of available space, many Southern California markets such as Orange County and Inland Empire have seen industrial rent increases of up to 6.5%, and Los Angeles saw the highest rent increases in the area of up to 6.7%. Additionally, the Los Angeles area has continued to lead the nation in industrial activity as users seek spaces in tight markets near shipping ports and transportation routes.
“We expect that amenitized industrial assets will continue to be in strong demand throughout the next several years,” says Tanner Jansen, Vice President of Acquisitions at Stos Partners. “By adding these acquisitions to our portfolio, our team will administer our strategic capital renovation plan and eventually re-tenant the assets, capitalizing on rising rental rates as the market continues to show new all-time highs.”
Jay Boyle, Executive Vice President at Stos Partners, adds that the firm plans to implement its proven value-add strategy and make significant cosmetic upgrades to both assets, including parking lot resurfacing, door renovations, LED lighting systems, and mechanical improvements, among others.
Stos Partners’ recent acquisitions include:
Stos Partners Acquires La Mirada Industrial Building in Off-Market Transaction
Stos Partners has acquired a 22,000 square-foot industrial asset in a prime infill location within the La Mirada submarket of Los Angeles, California. The building is currently leased by one tenant; the firm plans to execute renovations and upgrades and re-tenant the asset once the lease expires, according to Jansen.
“The ability to source a high-quality industrial property in this submarket speaks to the strength of our broker relationships, while the asset’s premier location will offer future tenants’ long-term value, as it is situated in a virtually non-vacant submarket,” says Jansen.
Situated on 1.2 acres, the building offers tenants access to the Interstate 5 and the 39 and 91 highways. The property also has a spacious parking area, which the firm plans to resurface. Future owners will also benefit from the on-site billboard that can be utilized to generate additional income from local businesses.
Utilizing strong, local broker relationships, the Stos team sourced this transaction off-market from a private seller for $6.46 million. The property is located at 14575 Firestone Boulevard in La Mirada, California.
Brad Schneider and Nick Krakower of Lee & Associates represented Stos Partners as the buyer in the transaction. Acquisition financing was provided by C3 Bank.
Stos Partners also acquired a 19,105 square-foot industrial refrigeration facility for nearly $6 million, the fifth cold storage asset in the firm’s portfolio. Located within the San Fernando submarket of Los Angeles, the property currently has an in-place sub-tenant, offering the lessee a well-located place of business with a spacious office area.
“This cold storage asset provides significant flexibility, as it can be easily repurposed to fit future tenants’ needs,” says Jason Richards, Partner at Stos Partners. “Further, this property is extremely well-located in an infill industrial pocket near a significant population hub, positioning it well for last-mile distribution.”
The property was last renovated in 2004, and the Stos team plans to implement a series of renovations and upgrades to capitalize on the high demand for improved industrial space near transportation routes.
The facility was built in 1958 and includes one dock-high door, an 11-foot-high ceiling, 800 AMPs electric system, and a fenced lot with 24 parking spaces.
Andrey Mindirgasov of Newmark represented Stos Partners in the off-market acquisition. The property is located at 2021 First Street in San Fernando, California. Acquisition financing was provided by C3 Bank.
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 over $1.4 billion in transactions to date, the firm targets the most competitive risk-adjusted returns in the marketplace through value-add acquisitions and strategic repositioning of industrial and multifamily assets of both institutional and small-to-mid-cap commercial properties.
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.