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11/18/20
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A joint venture between RanchHarbor and Stos Partners has acquired two industrial properties, totaling 28k sf of space and collectively referred to as the Benchmark Portfolio. The free-standing industrial warehouses are located in the San Diego submarkets of San Marcos and Poway. Both sites offer similar layout characteristics, with substantial excess land and low site coverage – a rare and distinctive quality that is in high demand.
The portfolio was purchased in an off-market deal, substantially below replacement cost and at an attractive basis. A five-year lease with the seller was negotiated as part of the transaction.
RanchHarbor provided a full capital stack solution for the transaction. The company’s capital markets advisory platform, RH Advisors secured the debt in conjunction with Stos Partners.
The Benchmark properties are well-located within two of San Diego’s highly supply-constrained industrial infill submarkets and provide easy access to key Southern California transportation routes. Both sites have large, secured fenced-in yards and low floor-area ratios (FAR), desirable layout characteristics for industrial properties of this size.
The property at 12575 Stowe Dr in Poway includes an 18k sf warehouse on 1.62 acres (26% FAR). The property at 145 N. Pacific St in San Marcos is a 10k sf warehouse on 1.16 acres (20% FAR). Typical FAR for San Diego industrial properties is 40%.
RanchHarbor and Stos Partners will begin capital improvements immediately on both Benchmark properties, positioning them for a long-term hold. The six-year business plan will allow the JV to provide a strong annual cash yield to its investors.
“The Benchmark Portfolio is RanchHarbor’s second acquisition in Q4 2020,” said Steve Sims, managing principal at RanchHarbor. “The demand for industrial assets of this size and design in Southern California is tremendous from both a user and investor standpoint, and this strategic investment offers significant yield and upside potential for our investors.”
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