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6/24/22
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Stos Partners has acquired two SoCal industrial assets totaling more than 41k sf in Los Angeles’ La Mirada and San Fernando submarkets. The transactions totaled about $12 mil.
Stos Partners plans to implement a 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. The improvements will include significant cosmetic upgrades to both assets, including parking lot resurfacing, door renovations, LED lighting systems, and mechanical improvements, among others.
“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.
In one of the purchases, Stos Partners paid $6.46 mil for a 22k sf industrial asset in La Mirada. 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.
Situated on 1.2 acres at 14575 Firestone Blvd, 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.
Brad Schneider and Nick Krakower of Lee & Associates represented Stos Partners in the transaction. Acquisition financing was provided by C3 Bank.
The other purchase was of a 19.1k sf industrial refrigeration facility located at 2021 First Street in San Fernando that traded for nearly $6 mil. The property currently has an in-place sub-tenant, offering the lessee a well-located place of business with a spacious office area. It is the fifth cold storage asset in the firm’s portfolio.
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. It was last renovated in 2004. Stos Partners intends to implement a series of renovations and upgrades to capitalize on the high demand for improved industrial space near transportation routes.
Andrey Mindirgasov of Newmark represented Stos Partners in the off-market acquisition. Acquisition financing was provided by C3 Bank.
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