Dealmaker: Stos Partners Buys Two, Sells One for $14M

Stos Partners, San Diego, sold a multi-tenant industrial asset and acquired a single-story office building and a two-story office building in southern California. The transactions totaled $13.8 million.

Company Principal CJ Stos said the recent transactions included selling a multi-tenant industrial property in Rowland Heights, Calif. for $6.6 million. The firm had acquired the asset, Walnut Auto Center, in an off-market transaction for $5 million in 2015.

Stos noted that his firm brought the property to full occupancy, secured long-term leases with all tenants and increased rents by 30 percent during its hold period.

“During our ownership, we re-skinned the block building with new stucco, completed roof repairs, overhauled the landscaping and implemented a coordinated building, monument and pole signage program,” said Jason Richards, a Partner with Stos Partners.

A private investor acquired the 30,000-square-foot property with eight automotive services tenants, Richards said.

Stos Partners also acquired a vacant 50,600-square-foot office building previously owned by ITT Technical Institute at 650 West Cienega Avenue in San Dimas, Calif. The firm purchased the asset for $5 million through a trustee sale.

“Our offer was accepted and the mandatory bid process passed with no competitive bids, which enabled us to acquire the asset far below replacement cost,” Stos said. He noted plans to rehabilitate the building’s exterior, re-landscape, upgrade the roof and HVAC system and add new signage at the property.

In the third transaction, Stos Partners acquired a vacant 3,400-square-foot office building in downtown Encinitas, Calif., from its owner-user for $2 million. The asset, adjacent to Stos Partners’ headquarters, will give the firm a redevelopment opportunity, Stos said.

“Moving forward, we believe we can either redevelop the property into a two-story asset that will attract modern office or retail tenants, or we may consider expanding our own company’s headquarters by combining the two spaces,” Stos said.