- 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
Risk Mitigation / Value-Add Strategy
- 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
