NATIONAL CITY, CA—The need to place capital allocated for industrial in strong-credit-tenanted assets is driving demand for this product type in the San Diego market and across the country, Stos Partners principals tell GlobeSt.com. As we recently reported, the privately held commercial real estate investment and management firm recently sold a 91,541-square-foot single-tenant industrial building here to a large institution for $21 million after acquiring the asset in November 2016 for $12.2 million and making improvements to it, reflecting a 210% project level IRR in just 14 months.
Stos says the sale reflects a larger trend of institutional demand in last-mile distribution centers. We spoke with CJ Stos, principal, and Jason Richards, partner, of Stos Partners, to discuss institutional demand for last-mile distribution centers in San Diego and how buyers are gaining an advantage in the competitive industrial marketplace.
Richards: “[Last-mile distribution centers] represent a long-term safety net for institutional investors, along with the credit of the tenants.”GlobeSt.com: What are you noticing in regard to institutional demand for last-mile distribution centers in San Diego?
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
