Staley Point Capital JV Pays $35M for LA Industrial Asset

12065 Pike St.

Staley Point Capital has teamed up with Bain Capital Real Estate to expand its Los Angeles footprint. The joint venture has acquired a 159,964 square-foot industrial facility in Santa Fe Springs, Calif., for $35 million. Triangle Distribution Co. sold the 1984-built warehouse in an off-market transaction. The property is fully leased to Anheuser-Busch, the American beer brewer.

Nublock Partners represented both parties in the transaction. JLL Capital Markets will help procure acquisition financing.

The asset at 12065 Pike St. features 25-foot clear heights, refrigerated storage and climate control, as well as 16 dock-high loading doors and 140-foot truck courts. Additionally, the property has an on-site fueling station, truck maintenance shop and trucking office. The facility is within 17 miles from downtown Los Angeles via the nearby interstate 5. The Los Angeles International Airport and the Ports of Los Angeles and Long Beach are approximately 23 miles to the southwest.

This latest acquisition comes on the heels of a series of joint investments the companies made since teaming up in 2020. Last week, the partnership acquired a 97,000-square-foot distribution center in the City of Industry, Calif., for $22 million. In December last year, the joint venture acquired a 42,000-square-foot warehouse in Commerce, Calif., for $13 million. JLL has been taped to arrange financing in both acquisitions.

A hot industrial market

The partnership is expanding its portfolio in one the best-performing markets across the U.S. Staley Point Capital and Bain Capital Real Estate paid $227 per square foot for 12065 Pike St. The figure is below the Los Angeles average sale price of $301 per square foot, according to the latest CommercialEdge report.

Despite last year’s disruptions caused by labor shortages and supply chain bottlenecks slowing activity at Los Angeles’ ports, the performance of area’s industrial sector continued to improve in 2021. Rent rates were up 6.2 percent year-over-year through November, on par with rent gains in the Inland Empire and 240 basis points above the national average.

With the average listing price coming in at $10.23 per square foot, the Southern Californian market is one of the most expensive major industrial hubs nationwide. High demand for industrial space also kept vacancy at a tight 3.1 percent in November.