Newport Beach and San Diego, Calif. â€“ October 01, 2020 â€“ CapRock Partners, a Western U.S.-focused industrial real estate investment and development firm with a robust portfolio of more than 21 million square feet, today announced the sale of its Old Grove asset, an 85,824-square-foot freestanding industrial property in the Scripps Ranch area of San Diego. Situated on a 5.4-acre site, CapRock sold the institutional-quality, Class A facility to a high-net-worth individual for an undisclosed amount. The property is currently fully leased by Manscaped, which creates products for menâ€™s grooming needs.
â€œBack in 2017, our team saw the diamond in the rough in this Old Grove asset, which sits in a submarket that boasts vacancy rates as low as 4.1%, a number that has held relatively steady through the COVID-19 pandemic,â€ said Nicholas Ilagan, senior vice president, asset management at CapRock Partners. â€œOld Grove is a shining example of how a well-executed, value-add business plan can deliver a much-needed institutional-quality industrial product to an infill market where demand is outpacing supply. We feel extremely privileged to support the regionâ€™s needs during a time when a pandemic-fueled e-commerce surge is creating nearly unprecedented demand and reshaping industrial real estate for decades to come.â€
Located at 10054 Old Grove Road, CapRock Partners acquired the asset in January 2018 as a strategic addition to its value-add portfolio. The asset is within minutes of the I-15 and the I-5, two key logistics corridors through Southern California, and in close proximity to the Sorrento Valley Coaster Station, Montgomery-Gibbs Executive Airport and San Diego International Airport.
At the time of acquisition, the 35-year-old property had significant functional challenges. Leveraging its expertise in value-add investments, CapRock implemented a top-to-bottom renovation plan to bring the property to Class A status. A demolition of the propertyâ€™s outdated and functionally obsolete features kickstarted the renovation process, and CapRock completely redesigned the buildingâ€™s entrance and parking areas to create a sense of arrival for its future tenant. The firm also built out speculative office space to help cast a vision for how a tenant could utilize the space.
Today the building comprises 61,838 square feet of warehouse and 23,986 square feet of high-end office space. Features include five dock-high loading doors and four grade-level loading doors with 30-foot clear heights, heavy power (4,000a 277/480v) and motion-sensor LED lighting. CapRock also modernized the building exterior and used drought-resistant landscaping to enhance the propertyâ€™s curb appeal. As part of the repositioning, CapRock implemented a flexible floor plan design offering several layout options, an expandable secured parking area and alternative uses for the equipment yard including employee recreation courts and an outdoor lounge to accommodate a variety of potential users.
â€œIn the past two years CapRock Partners has successfully transacted on more than 500,000 square feet of value-add investments in the San Diego market,â€ added Bob Oâ€™Neill, senior vice president, acquisitions at CapRock Partners. â€œAs we quickly approach the year end, CapRock Partners continues to work closely with its brokerage and owner relationships in order to diligently pursue additional value-add industrial acquisitions in the region.â€
In addition to its value-add investment platform, CapRock Partners also is one of the most active developers in the Western U.S. The company has nearly 4 million square feet currently under construction and will commence construction on an additional 7 million square feet in the next 12 months, including a 4.5-acre industrial site in the Sorrento Mesa area.
Bryce Aberg of Cushman & Wakefield represented CapRock in the sale. Jim deRegt of Lee & Associates and Richard Schwartz of Colliers International represented the buyer.
ABOUT CAPROCK PARTNERS
Founded in 2009, Newport Beach, California-based CapRock Partners is one of the leading private industrial real estate investment and development firms in the Western U.S. The company focuses on middle-market, value-add industrial assets and developing large-scale institutional-quality, Class A industrial warehouse facilities in key locations, serving the needs of corporate America, and third-party asset management services for institutional investors. CapRock Partners is registered with the U.S. Securities and Exchange Commission. The firm is actively acquiring land for development and value-add industrial buildings in the Western U.S. Since inception, its total investment and development pipeline exceeds 21 million square feet of industrial real estate. Follow the company on Facebook, LinkedIn, Twitter and Instagram.