In Q1 2013 CIRE acquired a 100% leased multi-tenant industrial flex asset built in 2003
The Property was purchased off-market direct from seller at an above market cap rate, representing a significant discount to comparable sales in San Diego
Excellent location a few hundred yards from the ocean and situated immediately west of the I-5 Freeway with direct on-ramp and off-ramp access adjacent to the site
The Property provides strong current cash flow and the Company plans to hold the asset long-term to capitalize on the quality of the location and the potential for strong long-term appreciation
Long term (10 year), low interest rate assumable debt was placed on the project allowing security for a long-term hold and flexibility for alternative exit strategies
Complete a complete audit and overhaul of property level operations to maximize efficiencies and reduce costs
The Property is condo mapped for 10 units, which provides a flexible exit strategy and potential to maximize value by selling individual units to owner-users
The project is comprised of Five (5) tenants within ten (10) suites, allowing for expansion and contraction flexibility with minimal future tenant improvement costs
Significant master planned development slated for land directly adjacent to the asset will provide potential for strong long-term appreciation
Within a relatively short hold period, CIRE executed a multi-faceted value-add strategy that resulted in significant enhancement of the quality and quantity of underlying cash flow at the property.
Realized an aggregate project level return on equity of 81% over a 23 month hold period, representing a return of investment of approximately 40.5% per year.
Property Type:
Multi-tenant Industrial
Sub-Market:
Chula Vista, CA
Number of Bldgs:
One(1)
SF/Acres:
31,302 SF/1.95 acres
Year Built: 2003
Occupancy at Disposition: 100%