Steel Peak Sells El Cajon Industrial Property for $9.5 Million, Highlighting Strong IOS Market Demand

Steel Peak, a commercial real estate investment firm, has successfully sold a 12,000-square-foot industrial outdoor storage (IOS) property in El Cajon, California, for $9.5 million, marking a significant profit from its acquisition price of $6.3 million in February 2024. The buyer, C&M Manufacturing, Inc., intends to utilize the site for its oil and gas industry operations, showcasing the property's appeal to owner-users in specific sectors.

The transaction highlights the strong demand for IOS properties in Southern California, especially those catering to contractors and construction-related businesses. Steel Peak's value-add approach, which involved demolishing outdated structures and upgrading the site with new paving and fencing, played a crucial role in enhancing the property's functionality and attractiveness to potential buyers like C&M Manufacturing.

Blake Rodgers and Pasha Johnson, Co-Founders of Steel Peak, emphasized the sale's significance, pointing to the firm's swift execution of its investment strategy and the competitive nature of the IOS market. The property's desirable features, such as M-54 zoning and multiple access points, further contributed to its marketability. The deal was brokered by Cameron Czubernat and Kerry Schimpf of Commercial Property Group for Steel Peak, with Aidan James of Inland Pacific representing the buyer.

This sale not only reaffirms Steel Peak's investment strategy but also reflects the continued vigor of the IOS market in strategically located areas. Steel Peak remains focused on identifying and acquiring IOS investment opportunities across the Western U.S., targeting properties with capitalized values between $3 million and $50 million.