SR COMMERCIAL ACQUIRES THREE ASSETS IN SAN DIEGO
PLANS SPEC BREWERY SPACE TO MEET DEMAND
SAN DIEGO, Calif. – July 21, 2015 – (RealEstateRama) — SR Commercial has acquired three industrial assets totaling 174,496 square feet in the San Diego market, including a multi-tenant industrial business park in Vista; an industrial flex/R&D property in Carlsbad; and two free-standing industrial buildings with yards. The firm plans a long-term hold for each asset, and has particularly unique plans for one of the recent acquisitions.
Spec Brewery To Be Created in Vista
“Shadowridge Business Center in Vista is uniquely positioned to serve the growing brewery community here in San Diego. We plan to strengthen this position by building out a spec brewery space in the business park,” says Adam Robinson, a Principal at SR Commercial who founded the firm along with partner CJ Stos. “We’ve seen incubator space built out for other industries in San Diego, such as biotech. However, we believe we are one of the first to implement this strategy in the brewery space.”
Robinson explains that many small breweries in the market would like to open but are unable to afford the necessary equipment. The Vista-area business park is already home to a brewery, Mother Earth Brewing, and SR Commercial expects to attract more with its unique strategy.
“There is a positive synergy among breweries, and they tend to work together as opposed to being overly competitive,” explains Robinson. “We believe that we can leverage this cohesion to attract local brewers to our property.”
The 91,485 square-foot Shadowridge Business Center is comprised of four buildings, including two single-tenant buildings, which are fully leased, as well as two multi-tenant buildings offering suite sizes as small as 1,000 square feet.
Louay Alsadek and Barbara Emmons of CBRE represented SR Commercial as the buyer, and also represented the seller in the transaction.
The property is located at 1930 & 1960 Watson Way and 2025 & 2055 Thibodo Road in Vista, California.
Creative Space With First-Class Finishes in Carlsbad
SR Commercial also recently acquired a free-standing corporate headquarters flex/R&D property totaling 65,041 square feet in Carlsbad, California for a total consideration of $8.725 million.
The property is an especially attractive investment based on its exceptional high-end finishes, according to SR Commercial Principal CJ Stos.
“The previous owners invested $3.6 million into the property’s interior, resulting in an extremely attractive space that will be in high demand in the Carlsbad submarket,” explains Stos, who notes that the property’s interior was refinished with expansive glass in order to create an open, creative work environment.
“Vacancy in Carlsbad continues to decline, and we anticipate strong leasing interest in this property as the market continues to tighten,” Stos continues. “The building’s floor plan is efficient, and is divisible for two tenants, however we believe we will be able to lease it to one quality tenant. In addition, parking for this property is above average for the market, offering a ratio of 3.4 spaces per 1,000 square feet.”
The building is in like-new condition, according to Stos, who notes that SR Commercial still plans to touch up the exterior paint and parking lot, and update the landscaping.
Aric Starck of DTZ represented SR Commercial as the buyer and also represented the seller in the transaction.
The property is located at 3193 Lionshead Avenue in Carlsbad, California.
Rare Industrial Spaces in Escondido
SR Commercial also acquired two free-standing, fully occupied industrial buildings totaling 17,970 square feet in Escondido, California.
“This is one of those hard-to-find, quality industrial investments that every investor is seeking in the San Diego market,” explains Stos. “The buildings are zoned for fenced yards, which is a rare find in this area, and is also a highly desirable attribute in a market that is already experiencing sub-four percent industrial vacancy.”
SR Commercial was able to negotiate a competitive price for the acquisition based on its local broker relationships and its history of strong transactions with the seller, according to Stos.
“We had acquired a separate property from the seller earlier this year, and our work together was very smooth,” explained Stos. “Based on that relationship, we were able to secure a purchase price of $105.73 per square foot. This is well below the market value of $150 per square foot, and represents a significant discount to the property’s replacement cost of approximately $175 per square foot.”
Tucker Hohenstein and Mike Erwin of Colliers represented SR Commercial as the buyer, and also represented the seller in the transaction.
The property is located at 240-245 Pauma Place in Escondido, California.
SR Commercial is a privately held, full-service commercial real estate investment company that acquires, owns and develops income-producing industrial and office properties. The firm, which partners with both high net worth private capital and institutional investors, has acquired 74 properties totaling over two million square feet and more than $275 million in commercial properties since 2011, and continues to conduct successful value-add repositioning and ground-up development projects.
SR Commercial’s two Principals are Adam S. Robinson, CPM, CCIM, SIOR; and CJ Stos, MRED. With its corporate office in San Diego and the Principals’ close ties to Orange County and Los Angeles County, SR Commercial has positioned itself as one of the leading real estate investment companies in its markets. More information is available at www.sr-commercial.com.
Contact:
Lexi Astfalk / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
lastfalk (at) browermillercole (dot) com
