Sales  ·  Industrial

Staley Point, Bain Capital Sell SoCal Warehouse at a Premium

Deal represents 75 percent increase over price it sold for in 2022

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A joint venture between Staley Point Capital and Bain Capital Real Estate has sold a 91,000-square-foot industrial asset in Southern California’s San Gabriel Valley, the firms announced Tuesday.

The partnership traded 18689 Arenth Avenue in City of Industry, Calif., for $38.4 million, or $421 per square foot, to an undisclosed buyer. Representatives for the partnership declined to identify the buyer. JLL (JLL) acted as financial adviser for the sale. 

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The sale represents a 75 percent increase over the $22 million the partnership paid for the property in January 2022. The sales price is also much higher than the average in L.A. County, which was $250 per square foot through the first 11 months of 2023, according to data from CommercialEdge.

“The Arenth sale demonstrates the significant continued demand for high-quality warehouses in infill locations and is further validation of our approach to the industrial real estate market,” Staley Point Managing Partner Eric Staley said in a statement.

The joint venture between Staley Point and Bain has shed other industrial properties in Southern California in recent months. In August, it announced the sale of 331 Cliffwood Park Street, a fully leased warehouse in Brea in Orange County, and 10907 Painter Avenue, a multitenant logistics facility in Santa Fe Springs, for a combined $54 million. Chicago-based Walton Street Capital purchased both properties, property records show.

The San Gabriel Valley’s industrial sector remained strong through late 2023, despite a slight increase in vacancy to 3.3 percent in the third quarter of last year, compared with 2.6 percent the previous quarter, according to an October market report by Lee & Associates. Rental prices also experienced a slight decrease at the time, averaging $18.96 per square foot on a triple-net lease basis, compared with $19.32 the previous quarter. 

Nick Trombola can be reached at NTrombola@commercialobserver.com.