Steel Peak, a commercial real estate investment firm focused on industrial outdoor storage (IOS) properties, announced today that it has sold a 12,000-square-foot IOS property located on 2.5 acres at 1324–1336 Magnolia Avenue in El Cajon, California to C&M Manufacturing, Inc. for $9.5 million. C&M Manufacturing will occupy the property for its operations, including the production and distribution of its products for the oil and gas industry.

Steel Peak originally acquired the property in February 2024 for $6.3 million. The company transformed a rundown multi-tenant yard by demolishing several dilapidated structures, preserving just one office and two shop buildings that offered high utility for future tenants. After allowing the existing tenants to remain in place for the first 12 months, the site was repositioned with new paving, fencing, and comprehensive interior and exterior building upgrades. The redevelopment also opened up the site for full drive-through access and expanded yard space, significantly improving overall functionality for IOS tenants.

“This sale highlights the sustained demand for well-located IOS properties in infill Southern California submarkets, especially those that cater to contractors and construction-related uses,” said Blake Rodgers, Steel Peak Co-Founder. We executed our value-add plan quickly and were able to exit to a long-term owner-user, validating our investment thesis.”

Steel Peak Principal and Co-Founder Pasha Johnson continued by saying “Owner-users remain aggressive in securing high-utility sites, especially as entitled IOS properties remain scarce, and competition intensifies for well-located yard sites.”

1324–1336 Magnolia Avenue spans approximately 2.5 acres and includes warehouse, office, and yard space for outdoor storage. It features M-54 zoning, entitlement for outside storage, multiple access points, and a level fenced yard.

Cameron Czubernat and Kerry Schimpf of Commercial Property Group represented Steel Peak in the sale. Aidan James of Inland Pacific represented the buyer in the transaction.

Steel Peak will continue to seek IOS investment opportunities throughout the Western U.S. with capitalized values ranging from $3 million to $50 million. The firm invests directly and in partnership with institutional and high net-worth investors.

About Steel Peak

Steel Peak is a Southern California–based real estate investment firm specializing in the acquisition and improvement of industrial outdoor storage (IOS) assets across major Western U.S. markets. The firm’s relationship-driven strategy focuses on uncovering overlooked opportunities that create value for both tenants and investors. For more information, please visit www.steelpeakproperties.com.

The post Steel Peak Sells Industrial Outdoor Storage (IOS) Property in San Diego Area for $9.5 Million; Originally Acquired It in Feb. 2024 for $6.3 Million appeared first on citybiz.

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