CARLSBAD — Commercial real estate in Carlsbad Village is booming.
Stos Partners, a privately held commercial real estate investment and management firm, along with Hanley Investment Group, sold a three-story, high-end mixed-use property comprised of retail, restaurant, creative office and residential space in the Carlsbad Village for $8.2 million.
A private family bought the Roosevelt Plaza at 560 Carlsbad Village Drive and 2975 Roosevelt Street. Stos Partners originally purchased the asset for $6 million in July 2016, according to CJ Stos, Principal of Stos Partners.
“In just 16 months, we were able to build tremendous value in this exceptional property,” Stos said.
The property was built in 2008 and features a 2,000-square-foot community deck with panoramic views of the Pacific Ocean, as well as office suites with concrete floors and exposed HVAC.
In addition, it features two high-end penthouse residential units, which offer single-story, ocean-view living with private two-car garages.
Jason Richards, a partner at Stos, said increases in rental income are driven by strong market fundamentals in Carlsbad, which are fueling increased demand for coastal retail, office and residential space.
“There is continued migration to coastal submarkets as companies and individuals realize quality of life advantages, often at more attractive costs than major markets such as downtown San Diego,” Richards added. “We monitor these trends to seek acquisition opportunities in coastal Southern California markets with strong growth potential.
“As high-end users continue to seek walkability, luxury and accessibility in coastal living and workspace, we will continue to see high demand for these well-located mixed-use projects.”
During Stos Partners’ ownership, the company executed leases on more than 60 percent of the building, bringing the property’s office and residential units to full occupancy. The firm also upgraded the property including new exterior paint and signage.
Stos Partners is headquartered in San Diego with an office in Orange County. It acquires, owns, operates and develops opportunistic commercial properties with a focus on value-add industrial and office investments.