Client: Owner-User / Exotic Automobile Business

Brokerage: Johnston Pacific Commercial Real Estate

Property: 1015 Calle Amanecer, San Clemente, CA

Transaction: Off-Market Industrial Acquisition

The Opportunity

Our relationship with Chas began in 2020, when Johnston Pacific helped him purchase an industrial property for his growing exotic automobile business. That first acquisition gave his company the space it needed to expand while allowing him to begin building equity through commercial real estate ownership.

Over the following years, two things happened: his business continued to grow, and so did the value of his real estate. The substantial appreciation of his original property demonstrated firsthand that owning the building his company operated from could provide benefits far beyond occupancy. Instead of simply paying rent, he was building equity and creating a valuable long-term asset.

The Challenge

Continued business growth meant Chas needed additional space, but finding the right industrial building in San Clemente is rarely simple. The property needed to satisfy his operational requirements while also making sense as a long-term investment.

Rather than wait for the right building to appear on the open market—where he would potentially be competing against multiple buyers—Johnston Pacific went to work behind the scenes.

Johnston Pacific’s Advantage

More than 35 years in the South Orange County commercial real estate market creates relationships, knowledge and access that can’t be replicated by simply searching online listings.

Through our network, Johnston Pacific learned about 1015 Calle Amanecer before the property was publicly offered for sale. We immediately recognized that it closely matched Chas’s requirements and brought the opportunity directly to him.

Our team guided him through the acquisition, negotiated on his behalf and successfully secured the property before it ever reached the open market.

The Results

The acquisition gives Chas something particularly powerful: a property that works for his business today and his financial future tomorrow.

His company now has the additional industrial space necessary to support its continued growth, while Chas has added another quality commercial property to his real estate portfolio. Rather than directing years of occupancy costs toward a landlord, he has the opportunity to build additional equity and benefit from potential long-term appreciation.

His strategy is straightforward: occupy the building today, build wealth through ownership, and ultimately have an asset capable of generating income in retirement.

Conclusion

The purchase of 1015 Calle Amanecer demonstrates why Johnston Pacific views buyer representation as much more than finding a building. We help business owners use commercial real estate as a tool to grow their companies and build long-term wealth.

In this case, a relationship that began with one purchase in 2020 evolved into another off-market opportunity six years later. Our knowledge of Chas’s business, combined with decades of relationships in the local market, allowed us to identify the right property and get him in front of the opportunity before the broader market even knew it existed.

The right building can solve today’s space problem. The right real estate strategy can help fund tomorrow’s retirement.

It’s writing a seven-figure check to the IRS.

After decades of ownership, appreciation has done exactly what you hoped it would. Unfortunately, so has your tax liability.

Too many investors hold properties they no longer want, not because they’re great investments, but because they’re afraid of the tax consequences of selling.

That’s letting the tax tail wag the investment dog.

There Is Another Option.

A Delaware Statutory Trust (DST) allows qualifying investors to complete a 1031 Exchange into professionally managed institutional real estate while continuing to defer capital gains taxes.

Instead of rolling your equity into another property that you have to locate, negotiate, finance, manage, maintain, lease, and eventually sell…

…you can exchange into a diversified portfolio of professionally managed assets that may include:

• Industrial Distribution Facilities
  • Medical Office Buildings
  • Class A Multifamily Communities
  • Self-Storage Facilities
  • Grocery-Anchored Retail Centers

What That Can Mean for Investors

✓ Potentially defer capital gains taxes through a 1031 Exchange

✓ Keep more of your equity invested instead of paying taxes immediately

✓ Eliminate day-to-day property management

✓ Diversify across multiple markets and asset classes

✓ Potential monthly income distributions

✓ Estate planning benefits for many investors

The Biggest Mistake We See

Owners spend years maximizing the value of their property…

…then lose sight of maximizing what they keep.

Selling isn’t the hard part.

Keeping your equity working for you is.

At Johnston Pacific, we’ve spent more than 35 years helping South Orange County commercial property owners maximize the value of their real estate. When it’s time to sell, we help our clients evaluate every available strategy not just finding a buyer, but helping preserve the wealth they’ve spent years creating.

If a sale may be in your future, whether that’s six months or five years from now, the planning should begin before your property goes on the market.

A one-hour conversation today could save months of unnecessary scrambling later.

Thinking about selling? Let’s discuss your options before the IRS decides how much of your equity they’ll receive.

Johnston Pacific Commercial Real Estate, Inc.
South Orange County’s Trusted Commercial Real Estate Advisors Since 1991

949-366-2020

Illustrative equity preserved with a DST (1031 Exchange)

Hypothetical $5M sale assuming a 30% combined tax burden. Example for illustration only.

* Johnston Pacific Commercial Real Estate, Inc. does not provide legal, tax, or investment advice. Delaware Statutory Trust investments involve risks and are not suitable for every investor. Please consult with your CPA, attorney, financial advisor, and qualified 1031 Exchange intermediary before making any tax or investment decisions.

We’re doing something new in the second half of 2026! Starting in May of this year, we started sending out letters celebrating the anniversary of your building purchase, our team at Johnston Pacific Commercial Real Estate prepares something that often generates surprised phone calls.

Not because there’s a problem.

Because many owners have no idea how much their property has increased in value.

If you’ve recently received one of our Property Value Growth reports, you know exactly what we’re talking about. The report compares what you paid for your building to its estimated value in today’s market and illustrates the growth your investment has experienced since purchase.

Some owners see a modest increase.

Others discover they’ve accumulated hundreds of thousands, or even millions, of dollars in additional equity.

And almost all of them ask the same question:

“Is my building really worth that much?”

Commercial Real Estate Is Often the Largest Asset You Own

Many business owners closely monitor their bank accounts, retirement plans, investment portfolios, and operating expenses.

Yet surprisingly few track the value of the building they own.

That can be a costly oversight.

For many owner-users and investors, commercial real estate represents one of the largest assets on their balance sheet. Unlike stocks, however, there isn’t a ticker symbol flashing across a screen every day telling you what your property is worth.

As a result, years can pass without an owner having a clear understanding of how their investment has performed.

That’s exactly why we created our annual Property Value Growth reports.

The Results Often Surprise Owners

We’ve seen countless examples throughout South Orange County where property values have significantly outperformed owners’ expectations.

A building purchased five years ago may have appreciated by 40%, 60%, or even more depending on location, property type, and market conditions.

In some cases, owners who purchased industrial properties only a few years ago are sitting on substantial equity gains that they never anticipated.

Many are shocked to learn that the wealth created by their building has exceeded the returns generated by other investments they actively monitor every month.

The reality is that commercial real estate has quietly created significant wealth for many South Orange County property owners over the past decade.

Why Have Values Increased?

Several factors continue to support property values throughout the region.

Limited Supply

One of the biggest drivers of appreciation is simple economics.

There are only so many industrial and commercial buildings available, particularly in South Orange County. With limited land available for new development, existing properties continue to benefit from constrained supply.

Strong Business Demand

Companies still need space to operate, manufacture, distribute products, and serve customers.

Well-located commercial properties remain highly desirable, creating competition among both users and investors.

Rising Construction Costs

The cost of building new commercial buildings continues to rise.

Land acquisition, labor, materials, permitting, and development fees have all increased substantially over the past several years. As replacement costs rise, existing buildings often become more valuable.

Increasing Rental Rates

Strong rental growth has also contributed to higher values.

Whether an owner occupies the building themselves or leases it to tenants, rising rental rates help support higher valuations throughout the market.

Why Knowing Your Value Matters

Many property owners assume valuation only matters when they decide to sell.

In reality, understanding your property’s current value can help guide numerous business decisions.

It may influence:

• Refinancing opportunities
• Estate planning strategies
• Partnership decisions
• Future acquisitions
• 1031 exchange planning
• Expansion plans
• Retirement planning

Even if you have no intention of selling, understanding the current value of your real estate helps you make better long-term decisions.

The Cost of Not Knowing

One of the biggest mistakes we see is owners operating on outdated information.

An owner who believes their property is worth what it was worth five years ago may miss opportunities to leverage equity, refinance advantageously, acquire additional assets, or reposition their investment strategy.

Commercial real estate markets change.

Values change.

Opportunities change.

The owners who stay informed are generally the ones who make the best decisions.

More Than Just a Number

Our Property Value Growth reports aren’t intended to encourage owners to sell.

In fact, many recipients have no intention of selling at all.

The purpose is to provide insight.

When you understand what your building is worth today, you gain a clearer picture of your financial position and the opportunities available to you moving forward.

After all, you wouldn’t ignore the value of your stock portfolio for five years.

Why ignore the value of one of your largest assets?

Our Commitment to Property Owners

For more than 35 years, Johnston Pacific Commercial Real Estate has helped South Orange County property owners maximize the value of their investments.

The annual Property Value Growth report is simply one way we help our clients stay informed about their assets and the market around them.

If you haven’t received a recent valuation update, or if you’re curious about how your property’s value has changed since you purchased it, we’d be happy to prepare a confidential analysis.

You may be surprised by what your building is worth today.

And that’s a phone call we always enjoy making.

Don’t hesitate to reach out, 949-366-2020

Client: Private Owner (Auto Repair Operator)

Brokerage: Johnston Pacific Commercial Real Estate

Property: 26911 Vista Terrace, Lake Forest

Transaction: Off-Market Style Marketing, Yard Industrial Sale

The Challenge

The owner of a long-standing auto mechanic’s shop decided it was time to exit the business but needed to do so quietly. He wanted to market the property without alerting employees or disrupting day-to-day operations. Adding to the complexity, the building included a fenced yard, a highly desirable feature for industrial users, but one that can quickly draw attention if openly advertised.

This required a strategy that balanced confidentiality with maximum buyer exposure.

Johnston Pacific’s Approach

Rather than rely on traditional online marketing that could expose the sale, our team executed a boots-on-the-ground outreach campaign. We spent hours going door to door across South Orange County, directly contacting business owners and users who would value a yard-equipped industrial property.

This hyper-targeted approach allowed us to:

• Protect the seller’s privacy
• Reach qualified users discreetly
• Create market awareness without public visibility
• Generate interest through personal relationships and local market knowledge

Execution & Results

As momentum was built through private outreach, an outside broker ultimately introduced the right buyer. Because Johnston Pacific had already created awareness and demand for the opportunity, the buyer stepped into a well-positioned transaction.

The sale successfully closed, and the owner exited the business on his terms, walking away with nearly $1.5 million from the sale.

The Outcome

This transaction highlights Johnston Pacific’s ability to adapt marketing strategies to meet sensitive client needs. Through discretion, persistence, and local market engagement, we were able to protect the client’s confidentiality while still driving a successful sale.

Conclusion

The sale of 26911 Vista Terrace demonstrates that effective brokerage isn’t always about broad exposure, it’s about the right exposure. By respecting the owner’s need for privacy and executing a highly targeted outreach plan, Johnston Pacific helped deliver a life-changing financial outcome. When clients trust us with complex situations, we bring creativity, hustle, and strategy to ensure the job gets done.