VISTA, CA—GlobeSt.com reports exclusively that SR Commercial has acquired an industrial portfolio here consisting of four buildings totaling 168,013 square feet, as well as a 1.43 acre developable land parcel.
The company plans to build a new, 30,000 square-foot addition on the land parcel, which will be the first speculative construction in Vista in three years, according to Adam Robinson, a principal at SR Commercial.
“This $15.2 million acquisition presents a tremendous opportunity to add value through repositioning a portfolio that is perfectly aligned with our ongoing investment strategy,” says Robinson, who founded SR Commercial along with partner CJ Stos. “After implementing any needed improvements, we anticipate selling two of the buildings to industrial users, and holding the remaining two buildings as long-term assets.”
SR Commercial has acquired more than a million square feet during the past two and a half years, and has both institutional and private equity partners in place, which expands its buying power and enables the firm to seek out larger deals throughout Southern California, according to Robinson.
“When we invest with private equity partners, we have the capability of utilizing the kind of strategy we are employing on this acquisition, which is to deliver an asset management strategy including decreasing our basis through selling part of the portfolio, increasing the remaining asset value through rehabilitation, development of additional square-footage, and the deployment of a tactical marketing and leasing/sales program. We have also been able to underwrite assets for a 15-plus year hold, which is somewhat unique as compared to many of our competitors,” Robinson said.
“Alternately, our firm is equally able to devise a short-term value-add strategy when working with our institutional partners, who require a much shorter horizon in order to meet their needs,” he adds.
The four building industrial portfolio acquired by SR Commercial is currently 79% occupied, and is comprised of two single-tenant buildings, located at 2641 La Mirada Drive and 1385 Park Center Drive; as well as two multi-tenant buildings, located at 2651 La Mirada Drive and 1125 Joshua Way.
1385 Park Center Drive is currently 100% occupied by Glacier Water Technologies, while beauty company Creative Nail Design occupies more than half of the Joshua Way building, which was originally a build-to-suit for Creative Nail Design.
Adjacent to the Joshua Way building is the land parcel, on which SR Commercial will construct an additional 30,000 square-foot high-bay distribution space that will be divisible with grade and dock-level loading.
“In Vista, there is a very limited supply of quality product with visible street presence, clear height, easily accessible loading, and proper ingress and egress,” notes CJ Stos, a principal and co-Founder of SR Commercial. “Our new development at Joshua Way will fill a void in the market for new, more functional and more visible industrial space in this size category.”
SR Commercial was represented by Barry Hendler, Rick Reeder and Brad Tecca of Cassidy Turley in the acquisition.
SR Commercial of San Diego, is a privately held, full-service commercial real estate investment company, which acquires, owns and develops income-producing industrial and office properties. In addition to owned real estate, the firm provides third-party management for more 5 million square feet of industrial, office, and retail properties.