COMMERCIAL REAL ESTATE TRANSACTION ALERT
Stos Partners, one of the most active commercial real estate investment and management firms in Southern California, has acquired a 139,000 square-foot industrial asset in the Inland Empire submarket of Jurupa Valley, California from a private seller for $19.8 million.
According to CJ Stos, Principal at Stos Partners, the firm saw immense potential in the property based on the under-served demand for quality manufacturing space in the market, and quickly moved forward to negotiate a competitive purchase price.
“While much of the current development and investment activity in the Inland Empire involves Class A distribution centers, there remains a strong demand from companies that understand the value of maintaining and growing manufacturing operations in this key industrial market,” explains Stos. “Most Southern California submarkets are seeing industrial vacancy rates in the one-percent range. As one of the most active buyers of industrial product in the region, our team immediately recognized the value of adding this core asset to our growing portfolio.”
Stos notes that the firm will implement a value-add strategy at the property, which was built in 1986, to bring a competitive manufacturing asset to the market.
“Drawing upon extensive experience in value-add renovations and market demands, our upgrades to the property will include office improvements, new paint, roof work, and repaved asphalt,” continues Stos. “Further, we recognized the potential for repositioning the ample 8.24 acres of land the property sits on, and will convert the excess land into yard space.”
Tanner Jansen, Vice President of Acquisitions at Stos Partners, adds that the firm is working closely with the City of Jurupa Valley to attract a tenant that would benefit the local business community and ensure the project is aligned with the city’s current moratorium that temporarily bans ‘truck-intensive’ projects.
“With the moratorium in mind, we met with the city of Jurupa Valley to better understand what the city envisioned for this vacant industrial asset,” says Jansen. “We ultimately developed a business plan that leverages the asset’s positioning and will help realize its full potential.”
The property is located at 10220 San Sevaine Way in Jurupa Valley, California. Stan Nowak and Cody Lerner of Avison Young represented Stos Partners as the buyer in the transaction. The seller was also represented by Nowak and Lerner along with John Pinjuv.