Staley Point, Bain Capital Sell 2 Orange County Assets
The properties traded at a significant premium to their previous sale just two years ago.
Staley Point Capital and Bain Capital Real Estate have sold two industrial assets in Buena Park, Calif., after only two years of ownership. A consumer products business paid $53.3 million for the neighboring facilities.
The deal marks the joint venture’s fifth disposition over the past 24 months for a combined aggregate amount of $231 million.
The properties at 5530 Beach Blvd. and 5609 River Way total 183,000 square feet on 9.2 acres in a highly sought-after area. They were acquired in March 2022 for $41 million, in a sale-leaseback deal that was financed by a $32.4 million loan from Mesa West Capital.
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The warehouses are just off Highway 39, providing direct access to Interstate 5. They are also at the intersection of Los Angeles and Orange County, two of the most supply-constrained markets in the country due to a structural supply-demand imbalance.
Additionally, Orange County is supported by the Ports of Los Angeles and Long Beach, which have experienced double-digit year-over-year import growth in nine of the past 10 months.
Low on sales, high on rents
The Orange County industrial market has witnessed an investment volume amounting to $651 million in the first half of the year, according to a recent CommercialEdge report. The county lagged all other California metros such as the Bay Area (nearly $2.3 billion in sales), Los Angeles (some $1.6 billion) and the Inland Empire ($893 million).
However, the market had the highest average value for industrial rents in the U.S., clocking in at $15.69 as of June, and was one of the top three markets in California for rent growth (8.6 percent). The Inland Empire led the ranking (12.5 percent), followed by Los Angeles (12.0 percent).
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