SR COMMERCIAL COMPLETES THREE INDUSTRIAL TRANSACTIONS IN SOUTHERN CALIFORNIA
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100,600 Square-Foot Multi-Tenant Industrial Acquisition in Temecula
SR Commercial has acquired a 100,600 square-foot multi-tenant industrial property for a total consideration of $6.975 million in Temecula, Calif.
The property is currently 100 percent occupied by Get Air of Temecula and Mountain View Community Church.
“We immediately recognized the potential for this asset to fill a void in the market,” says Robinson, who founded SR Commercial along with partner CJ Stos. “Temecula has approximately 15 million square feet of industrial space and an overall vacancy rate of approximately five percent. That said, the vacancy rate for smaller, approximately 20,000 square-foot bay size units is under two percent. For that reason, when the church concludes its lease, we plan to divide that space into two or three smaller units and lease those to more conventional industrial or showroom tenants.”
Prior to that, SR Commercial will make exterior improvements including roof repairs and exterior paint, as well as updating the landscaping and freeway facade.
SR Commercial and the seller, Liberty Advisors, LLC, were represented by Rob Guiness and Scott Stewart of CBRE.
The property is located at 26201 Ynez Road in Temecula, California.
Sorrento Valley Office Acquisition
SR Commercial has also acquired a 35,335 square-foot commercial project consisting of two R&D/flex office buildings located in the Sorrento Valley submarket of San Diego, California.
“Sorrento Valley is the technology and telecom hub of San Diego,” says Robinson. “These industries continue to lead commercial real estate growth throughout the nation, and this project will benefit from this forward momentum.”
Robinson also notes that nearby assets are owned by institutional quality owners, including Biomed Realty Trust, Westcore, Parallel, Cruzan | Monroe, and Rexford, among others, further demonstrating the strength of the investment’s location.
“The topography of this submarket restricts development opportunities, and the area is essentially built-out,” says Robinson. “Based on these factors, we anticipate a strong rental growth for these assets.”
SR Commercial plans to make significant improvements to the buildings, which are currently vacant, and then market the two buildings for lease, both together and separately.
CJ Stos, a Principal at SR Commercial, explains, “Because the properties are on separate parcels, in the future, when we decide to sell, we have the benefit of multiple options to exit our investment though either the sale of each building to individual users, or together as a leased investment.”
The properties are located at 10505 Roselle Street and 3770 Tansy Street in San Diego, California.
$5.9 Million Sale of Industrial Property in Vista
SR Commercial completed a full-cycle repositioning project in Vista, California with the $5.9 million sale of a 39,672 square-foot industrial corporate headquarters property. SR Commercial acquired the property in February 2012 for $2.88 million ($72.63 per-square-foot) from Bank of America, which foreclosed on the property in 2012.
Stos notes, “At the time, we were able to secure a price that was substantially lower than the sales price for comparable buildings in the area, which ranged from between $87 and $137 per-square-foot.”
Stos credits SR Commercial’s strong relationships with local broker partners for the firm’s ability to secure the acquisition in 2012 instead of a number of other interested buyers.
“After acquiring the property, we made a series of improvements and secured a tenant for the property, which is now fully occupied by Select Supplements, Inc.,” says Stos. “Through smart and strategic execution, we were able to increase the value of the property and sell the asset at a strong price in the current market.”
Isaac Little and Marko Dragovic of Lee & Associates represented SR Commercial as the seller in the transaction, and also represented Nordic Naturals, Inc. as the buyer.
The property is located at 2390 Oak Ridge Way in Vista, 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 68 properties totaling approximately two million square feet and more than $250 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:
Elise Anguizola / Jenn Quader
Brower, Miller & Cole
(949) 955-7940
eanguizola (at) browermillercole (dot) com
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