Staley Point Capital ("Staley Point"), a value-add investor focused on industrial properties in Southern California, and Bain Capital Real Estate ("Bain Capital"), the real estate investing business of Bain Capital, today announced the sale of 18689 Arenth Avenue, a 91,000 square-foot industrial asset in the City of Industry, California, for $38.4 million, or $421 per square foot.
The Staley Point and Bain Capital programmatic joint venture originally acquired the asset in January 2022 for $22.0 million, or $241 per square foot. Arenth is a newly renovated, 24-foot clear asset with eight dock-high positions and a functional concrete truck court. The asset is located in the City of Industry within the San Gabriel Valley, which benefits from its central location at the intersection of Los Angeles, Orange and San Bernardino Counties. The asset also provides direct access to Highway 60, which connects the affluent West Los Angeles consumer markets, two nearby intermodal yards, and distribution centers within the Inland Empire.
"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," said Eric Staley, Managing Partner of Staley Point. "Along with Bain Capital, we remain firmly committed to this value-add strategy and continue to seek out similar assets in supply-constrained markets across the West Coast."
The San Gabriel Valley's demand for industrial infill properties is sustained by the historically low vacancy rate of 1.5% and three consecutive months of growing import volumes at the Ports of Los Angeles and Long Beach after the ratification of a new six-year West Coast Ports Labor Agreement. The greater Los Angeles market benefits from the consumption strength of 21 million residents and the incurable supply-demand imbalance with only 1.0% of new supply under construction and a 1.8% vacancy rate as of 3Q'23 per research from CBRE Group.
"We look forward to building on our successful partnership with Staley Point as we continue to capitalize on attractive investment opportunities in the region that align with the joint venture's thematic infill industrial strategy," said Andrew Terris, a Partner at Bain Capital Real Estate.
Staley Point and Bain Capital have completed four exits from the firms' curated portfolio of high-quality infill industrial properties across Southern California, Seattle, and the Bay Area, with cumulative sales over the last 18 months totaling $177 million in proceeds. Most recently, the joint venture sold two industrial real estate assets, 331 Cliffwood Park Street and 10907 Painter Avenue, for a combined $54.0 million, or $339 per square foot.
Latham & Watkins LLP served as legal counsel to Staley Point Capital and JLL acted as the financial advisor for the transaction.
About Staley Point Capital
Staley Point Capital is a Los Angeles-based real estate investment firm. The firm was founded in 2019 by Kevin Staley and focuses on the acquisition of value-add and opportunistic real estate investments primarily in the industrial sector. The current portfolio is diversified across the Southern California, Seattle and the San Francisco Bay Area. To find out more, visit www.staleypoint.com.
About Bain Capital Real Estate
Bain Capital Real Estate was formed in 2018 and pursues investments in often hard-to-access sectors underpinned by enduring secular trends that drive long-term demand growth for real estate assets and services. The Bain Capital Real Estate team has been executing its strategy since 2010 (formerly as a part of Harvard Management Company), having invested and committed over $7.7 billion of equity across multiple sectors. Bain Capital Real Estate focuses on assets where the team applies its deep industry expertise to accelerate impact and drive operational improvements. Bain Capital Real Estate's strategy aligns with the value-added investment approach that Bain Capital pioneered and leverage's the firm's global platform and significant experience across asset classes to further bolster its insights and sourcing capabilities. Bain Capital is one of the world's leading private investment firms with approximately $180 billion of assets under management. For more information, visit https://www.baincapitalrealestate.com.
