Newport Beach, Calif. and San Diego – November 16, 2020 – RanchHarbor, a real estate investment firm based in Newport Beach, Calif., and Stos Partners, a privately held commercial real estate investment and management firm based in San Diego, today announced their joint venture partnership in the acquisition of two industrial properties, collectively referred to as the Benchmark Portfolio. The portfolio includes two free-standing industrial warehouses totaling 28,000 square feet in the San Diego submarkets of San Marcos and Poway. Both sites offer similar layout characteristics, with substantial excess land and low site coverage – a rare and distinctive quality that is in high demand.
RanchHarbor and Stos Partners purchased the Benchmark Portfolio off-market, substantially below replacement cost and at an attractive basis. A five-year lease with the seller was negotiated as part of the transaction. RanchHarbor provided a full capital stack solution for the transaction. The company’s capital markets advisory platform, RH Advisors secured the debt in conjunction with Stos Partners.
“The Benchmark Portfolio is RanchHarbor’s second acquisition in Q4 2020. We are extremely pleased to align with Stos Partners, a best-in-class operator with extensive local market knowledge and a strong investment track record,” said Steve Sims, managing principal at RanchHarbor. “The demand for industrial assets of this size and design in Southern California is tremendous from both a user and investor standpoint, and this strategic investment offers significant yield and upside potential for our investors. We look forward to partnering with the Stos team on similar, future opportunities.”
The Benchmark properties are well-located within two of San Diego’s highly supply-constrained industrial infill submarkets and provide easy access to key Southern California transportation routes. Both sites have large, secured fenced-in yards and low floor-area ratios (FAR), desirable layout characteristics for industrial properties of this size. 12575 Stowe Drive in Poway includes a 18,000 square foot warehouse on 1.62 acres (26% FAR). 145 N. Pacific Street in San Marcos is a 10,000 square foot warehouse on 1.16 acres (20% FAR). Typical FAR for San Diego industrial properties is 40%.
“As one of the most active buyers of commercial real estate in San Diego, we recognized the potential of the Benchmark Portfolio right away,” said CJ Stos, principal of Stos Partners. “RanchHarbor’s understanding of the Southern California industrial market and discretionary source of capital allowed us to move quickly to secure the opportunity and close the transaction in this incredibly competitive environment where vacancies are around 5.1%, according to CBRE.”
RanchHarbor and Stos Partners will begin capital improvements immediately on both Benchmark properties, positioning them for a long-term hold. The six-year business plan will allow the JV to provide a strong annual cash yield to its investors.
Earlier this quarter, RanchHarbor acquired The Palms at Monte Vista, a 44-unit, Class B apartment community located in central Phoenix. The firm is actively seeking value-add and opportunistic general partner (GP) and limited partner (LP) commercial real estate investment opportunities in select western U.S. markets with targeted equity commitments between $2 million and $15 million.
Founded in 2020, RanchHarbor is an integrated, real estate investment firm based in Newport Beach, Calif. The company combines the real estate experience and industry knowledge of Isles Ranch Partners with that of former principals from Landmark Real Estate. RanchHarbor offers joint venture equity and general partner co-invest equity, targeting commercial and multifamily real estate investments between $2 million and $15 million in select western U.S. markets. It also provides sophisticated asset management, receivership and capital advisory services to institutional and private investors, asset owners and operators. For more information, visit ranchharbor.com. Follow the company on LinkedIn.
ABOUT STOS PARTNERS
Stos Partners is a privately held commercial real estate investment and management firm that invests in real estate directly and in partnership with high-net-worth and institutional investors. With a track record spanning nearly one billion in transactions to date, the firm targets the most competitive risk-adjusted returns in the marketplace through opportunistic acquisitions, strategic redevelopment and ground-up development of both institutional and small-to-mid-cap commercial properties. Headquartered in San Diego, with an office in Orange County, Calif. and Laredo, Texas, Stos Partners’ local expertise and longstanding relationships translate into the ability to source, fund and close transactions quickly and profitably.