Key Takeaways
- • Staley Point Capital and Bain Capital Real Estate completed the sale of two Southern California industrial properties for $54 million ($339 per square foot), representing the second and third successful exits for their joint venture.
- • The sale generated a 53% gain on the original 2021 acquisition price of $42.6 million ($183 per square foot), demonstrating significant value creation through a value-add strategy including capital improvements.
- • The two assets—331 Cliffwood Park Street in Brea (single-tenant warehouse) and 10907 Painter Avenue in Santa Fe Springs (multi-tenant logistics facility)—comprise 160,000 square feet of fully leased or newly renovated space positioned near major logistics hubs including the Port of Long Beach.
- • The transaction underscores persistent institutional demand for high-quality infill industrial real estate in Southern California, the nation's largest industrial market, driven by proximity to major ports, a 600,000+ business commercial base, and a population exceeding 21 million residents.
- • Latham & Watkins advised on the sale, with the joint venture maintaining commitment to acquiring hyper-infill industrial assets and land sites in top-tier markets.
Summary
Staley Point Capital and Bain Capital Real Estate announced on August 17, 2023, the completion of a $54 million sale of two Southern California industrial properties, marking the second and third successful exits for the established joint venture partnership. The transaction involved 331 Cliffwood Park Street in Brea and 10907 Painter Avenue in Santa Fe Springs, with a combined footprint of 160,000 square feet across 9.2 acres. The sale price of $339 per square foot reflects strong pricing dynamics in the regional industrial market.
The properties were originally acquired by the joint venture in 2021 through separate transactions at a combined purchase price of $42.6 million ($183 per square foot). The $54 million sale price represents a 53% gain on the original investment, demonstrating the effectiveness of the partners' value-add investment strategy. Cliffwood operates as a fully leased, single-tenant warehouse offering direct 57 freeway access throughout Orange County, while Painter functions as a newly renovated, multi-tenant logistics facility positioned approximately 20 miles from the Port of Long Beach, a critical advantage for distribution and supply chain operations.
Eric Staley, Managing Director of Staley Point Capital, attributed the successful exit to market fundamentals and execution quality. "This transaction demonstrates the significant demand for high-quality warehouses in infill locations, as well as the successful execution of our value-add program, which often includes capital improvements to enhance appeal to both tenants and owners," Staley stated. The firm indicated continued commitment to the strategy, with plans to pursue additional hyper-infill industrial assets and land sites in top-tier markets in partnership with Bain Capital.
Southern California maintains its position as the nation's largest industrial real estate market, supported by structural advantages including proximity to the Ports of Los Angeles and Long Beach, a commercial base exceeding 600,000 businesses, and a dense population surpassing 21 million residents. These fundamentals continue to drive institutional investor demand for well-positioned logistics and warehouse assets. Latham & Watkins provided legal counsel on the transaction.
The properties were originally acquired by the joint venture in 2021 through separate transactions at a combined purchase price of $42.6 million ($183 per square foot). The $54 million sale price represents a 53% gain on the original investment, demonstrating the effectiveness of the partners' value-add investment strategy. Cliffwood operates as a fully leased, single-tenant warehouse offering direct 57 freeway access throughout Orange County, while Painter functions as a newly renovated, multi-tenant logistics facility positioned approximately 20 miles from the Port of Long Beach, a critical advantage for distribution and supply chain operations.
Eric Staley, Managing Director of Staley Point Capital, attributed the successful exit to market fundamentals and execution quality. "This transaction demonstrates the significant demand for high-quality warehouses in infill locations, as well as the successful execution of our value-add program, which often includes capital improvements to enhance appeal to both tenants and owners," Staley stated. The firm indicated continued commitment to the strategy, with plans to pursue additional hyper-infill industrial assets and land sites in top-tier markets in partnership with Bain Capital.
Southern California maintains its position as the nation's largest industrial real estate market, supported by structural advantages including proximity to the Ports of Los Angeles and Long Beach, a commercial base exceeding 600,000 businesses, and a dense population surpassing 21 million residents. These fundamentals continue to drive institutional investor demand for well-positioned logistics and warehouse assets. Latham & Watkins provided legal counsel on the transaction.
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