Staley Point, Bain Capital JV Buy SoCal Warehouses for $43M
By Nick Trombola August 5, 2024 12:39 pm
reprints
The industrial markets in Los Angeles and Orange counties are on the cooldown with rising vacancy rates, but that hasn’t stopped Staley Point Capital and Bain Capital Real Estate from acquiring more space.
The joint venture has purchased two industrial properties, one in each county and together totaling 232,000 square feet, Commercial Observer has learned. The firms spent $42.6 million, or more than $183 per square foot, to acquire the two properties from a private seller, a spokesperson for the JV said.
The properties are at 21339 Nordhoff Street, in Chatsworth, Calif., and 2325-2335 Moore Avenue, in Fullerton, Calif. The former is a 70,000-square-foot facility, fully leased to aerospace, defense and industrial systems manufacturer Moog, while the latter is a 162,000-square-foot warehouse fully leased to food manufacturer Stir Foods.
“These acquisitions underscore our commitment to investing in well-located industrial assets that benefit from strong demographic tailwinds and in-place tenancy,” Eric Staley, managing partner at Staley Point, said in a statement. “Both properties align with our infill investment strategy, offering compelling value in highly supply-constrained submarkets with strong long-term demand fundamentals.”
“We believe these markets are well-positioned to benefit from continued demand and rent growth and look forward to capitalizing on additional opportunities in the region that align with our thematic investment approach,” Andrew Terris, a partner at Bain Capital, added.
The deal is the second closed by the joint venture in recent weeks. The firms sold two industrial properties in Buena Park, Calif., last month for $53.3 million to an unnamed “consumer product business.”
The industrial vacancy rate in L.A. County rose to 5.3 percent this past quarter, the ninth consecutive quarter of rising rates since the tail end of the COVID-19 pandemic, according to a market report from NAI Capital. The county has added 3.3 million square feet of new space since the beginning of this year, resulting in 8.3 million square feet of negative absorption since the start of 2024.
Still, L.A.’s San Fernando Valley, where the Nordhoff Street property is located, is faring better than the rest of the county. The valley has the lowest vacancy rate of all the L.A. County submarkets at 1.6 percent, as well as the lowest availability rate at 3 percent, according to a market analysis by CBRE (CBRE).
Meanwhile, neighboring Orange County has also seen a relative downturn in its industrial market lately. The county’s vacancy rate rose to 2.1 percent this past quarter, according to a separate analysis by CBRE, representing the seventh straight quarter of rising vacancy there.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
