SAN DIEGO, California, – January 20, 2015 – (RealEstateRama) — SR Commercial has acquired the Oceanside Commerce Center, a five building, multi-tenant industrial park encompassing over 70,000 square feet, for total consideration of $7.5 million.
The property, which was acquired as part of a 1031 exchange, will be held as a long-term cash flow asset by SR Commercial, according to Adam Robinson, a Principal at SR Commercial.
“The multi-tenant industrial market continues to be a strong segment in the San Diego market,” says Robinson, who founded SR Commercial along with partner CJ Stos. “With the stabilizing economy, many small business tenants are remerging and seeking space under 5,000 square feet in this market. The combination of growing tenant demand and an increased tightening of availability in industrial product will enable us to add strong value to this asset through strategic rent increases as current leases come to term.”
The property was 85 percent occupied at the time of purchase, and SR Commercial plans to immediately implement interior and exterior enhancements in order to justify gradual rent increases, according to Robinson.
Built in 1987, the property was well maintained by the seller, who was seeking a buyer with the ability to be flexible with the close of escrow.
“The seller completed all due diligence in advance, which allowed us to act quickly to secure the property with a $250,000 non-refundable deposit on the first day,” notes Robinson. “From there, we were very flexible and could have closed in 30 days but we allowed the escrow to go for over 90 days to allow the seller to find an exchange property.”
“Industrial inventory is extremely limited in San Diego, requiring buyers who can be flexible and can move extremely rapidly. This transaction is an example of SR Commercial’s ability to do just that,” says Robinson.
SR Commercial was represented by Michael Hartel and Joe Winkelmann of Voit Real Estate Services’ Irvine office. The seller, Bob Voit, was represented by Randy LaChance of Voit Real Estate Services’ San Diego office.
The property is located at 4747, 4749, 4751 Oceanside Blvd., and 1818, 1820 Peacock Blvd. in Oceanside, California.
SR Commercial is a privately held, full-service commercial real estate investment company, which acquires, owns and develops income-producing industrial and office properties. The firm’s two Principals include Adam S. Robinson, CPM, CCIM, SIOR, and CJ Stos, MRED.
As an active commercial real estate operator with a well-established reputation as a value-added investor, SR Commercial focuses on real estate opportunities that are inefficiently priced due to a variety of circumstances. These include vacancies, rollover risk, sub-optimal management, inefficient current use, deferred maintenance, long-term undervalued leases or other unfavorable property and market conditions.
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 respective markets. In addition to owned real estate, the firm provides third-party management for more 5 million square feet of industrial, office, and retail properties. More information is available at www.sr-commercial.com.
Amanda Alenick Brenner/ Jenn Quader
Brower, Miller & Cole