Steel Peak Sells San Diego Area IOS Property for $9.5 Million, Demonstrating High Demand for Industrial Outdoor Storage

Steel Peak, a commercial real estate investment firm, has sold a 12,000-square-foot industrial outdoor storage (IOS) property in El Cajon, California, for $9.5 million, a significant profit from its $6.3 million acquisition in February 2024. The property, located at 1324–1336 Magnolia Avenue, was sold to C&M Manufacturing, Inc., which will use the site for its oil and gas industry operations. The sale highlights the robust demand for IOS properties in Southern California, particularly those serving contractors and construction-related businesses.

The firm undertook extensive renovations, including demolishing dilapidated structures and upgrading the site with new paving, fencing, and building improvements, enhancing its functionality and appeal. Blake Rodgers, Steel Peak Co-Founder, noted the successful execution of their value-add plan and the sale to a long-term owner-user as validation of their investment strategy. Pasha Johnson, Principal and Co-Founder, emphasized the aggressive pursuit of high-utility sites by owner-users amid scarce entitled IOS properties.

The property features M-54 zoning, entitlement for outside storage, and includes warehouse, office, and yard space, making it an attractive asset for industrial use. The transaction was facilitated by Cameron Czubernat and Kerry Schimpf of Commercial Property Group for Steel Peak, with Aidan James of Inland Pacific representing the buyer. Steel Peak continues to seek IOS investment opportunities in the Western U.S., targeting properties with capitalized values between $3 million and $50 million.