CrowdStreet: Rose Canyon Business Park

Real estate investment platform CrowdStreet announced an investment offering in a multitenant flex industrial property 9 miles north of downtown San Diego.

Rose Canyon Business Park is a 15-building, 150-suite business community spanning 38 acres. The property was acquired by sponsor Vertical Ventures in March at a 17% discount compared to the underwritten value in the previous year. The new owners plan to implement a comprehensive mark-to-market rent strategy to increase net operating income and overall performance of the property.

Over 900,000 people are within a 10-mile radius of the business park. The dense population combined with the transit-oriented location will aid the tenants of the property and help maintain and improve upon the 94% occupancy rate.

The area has a high demand for flex industrial space. It’s been more than a decade since the last industrial building was built and with virtually no projects in the construction pipeline, Rose Canyon is optimally situated for growth. The owners believe the constrained nature of the submarket will allow rents to be increased by an average of 50% per square foot over the long term.

Vertical Ventures is a seven-time sponsor through CrowdStreet, and the group has extensive experience in acquiring under-valued industrial, office and flex properties in supply-constrained markets. The real estate investment firm has three similar projects in the market, all of which performing ahead of projections. Vertical Ventures manages 3.5 million square feet of assets with a total value of more than $271 million.

The minimum investment for Rose Canyon Business Park is $25,000.

View details of CrowdStreet’s offerings

Photo courtesy of CrowdStreet