The firm initially acquired the asset in December 2022 for $10.9 million, implementing a successful business plan.
PHOENIX, Ariz., (May 15, 2024) – Stos Partners, one of the most active commercial real estate investment and management firms, has announced the successful sale of a 94,186-square-foot industrial building located on 4.20 acres at 1002 S. 54th Avenue in Phoenix, Arizona to a private investor for $16.5 million.
Stos Partners acquired the vacant building in December 2022 for $10.9 million. Led by Principal and Founder CJ Stos, Partner Jason Richards, Executive Vice President Jay Boyle, and Vice President of Acquisitions Morgan Hill, the company implemented a capital improvement program, stabilizing and re-tenanting the asset. Improvements included warehouse upgrades, dock door replacements, interior and exterior painting, parking lot repairs, and miscellaneous deferred maintenance repairs.
“The Phoenix industrial market has seen a spike in tenant demand in recent quarters,” says CJ Stos, Principal at Stos Partners. “Our team identified this asset’s value during the initial acquisition in 2022. Through deep relationships with local brokers, we were able to secure a buyer in a timely manner.”
“This market saw nearly 2.9 million square feet of net absorption in the first quarter with more than 3.8 million square feet of pending leases expected to be signed by year’s end according to JLL’s Q1 Phoenix Industrial Report,” said Richards. “During the period, the market also saw rents grow by 2.4 percent.”
Built in 1992, the subject property features 83,889 square feet of warehouse and distribution space and approximately 7,000 square feet of office space. Situated in the Southwest Phoenix submarket, the building is ideally located within a 20-minute drive of all parts of the Phoenix area.
Stos Partners was represented by Phil Haenel, Will Strong and Foster Bundy of Cushman & Wakefield as well as Anna Josephson of KBC Advisors.
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 of over $1.7 billion in transactions to date, the firm targets the most competitive risk-adjusted returns in the marketplace through value-added acquisitions and strategic repositioning of industrial and multifamily assets of institutional and small-to-mid-cap commercial properties.
Headquartered in San Diego, California, with offices in Orange County, California, and Laredo, Texas, Stos Partners’ local expertise and longstanding relationships allow it to source, fund, and close transactions quickly and profitably. More information is available at www.stospartners.com.