California CRE News In Your Inbox.

Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.

Sub Markets

Property Sectors


California  + San Diego  + Industrial  | 
San Marcos Industrial

Cold Storage Facility Doubles in Value in 14 Months

Stos Partners initially acquired the vacant 113,500-square-foot cold storage industrial facility in San Marcos for $18.9 million in April 2020. After implementing a strategic value-add program and securing a triple-net lease to Stone Brewing, the largest brewery in Southern California, Stos sold the property for $42.2 million to an institutional buyer.

“We immediately recognized the potential in this asset based on its prime location with easy access to north and south San Diego as well as the Inland Empire,” says CJ Stos, principal at Stos Partners. “Demand for cold storage facilities has grown exponentially during the COVID-19 pandemic. In fact, the value of the cold storage sector is on track to grow by $102.2 billion in the next five years, according to a recent Transwestern report.”

The Stos team was able to build on these strong fundamentals as well as the strength of the local San Diego industrial market to create property-level value, ultimately leasing the property to Stone Brewing, which plans to use the building as its headquarters location, according to Jay Boyle, executive vice president at Stos Partners.

“The San Diego industrial market is outperforming many others in the nation, posting its highest net absorption since 2018 in Q1 of 2021,” says Boyle. “At an uncertain time when many investors brought their activity to a halt, we had the experience, confidence and foresight to proceed with this acquisition and lucrative business plan.”

The property is located at 505 South Pacific St. During its ownership, Stos implemented a series of upgrades at the property.

“The vision for this project was to transform an under-used cold storage facility in an in-demand location into a performing investment, and we’ve accomplished exactly that,” says Jason Richards, partner with Stos Partners.

Darla Longo, Barbara Perrier, Louay Alsadek and Hunter Rowe with CBRE, and Bob Willingham with Kidder Mathews represented Stos Partners as the seller in this transaction.


Inside The Story

CJ Stos

About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

  • ◦Sale/Acquisition
New call-to-action
New call-to-action
New call-to-action