Despite rising vacancy in industrial buildings across Southern California, Staley Point Capital and Bain Capital Real Estate have placed a $42.6 million bet on two warehouses.
The Sawtelle- and Boston-based investors bought a 70,000-square foot warehouse at 21339 Nordhoff Street, in Chatsworth, the Commercial Observer reported. The joint venture also picked up a 162,000-square-foot warehouse at 2325-2335 Moore Avenue in Fullerton.
The seller was undisclosed. The combined price for both properties totaling 232,000 square feet works out to $183 per square foot.
The Nordhoff warehouse in L.A.’s west San Fernando Valley is fully leased to Moog, an aerospace, defense and industrial systems manufacturer.
The Fullerton warehouse in Orange County is fully leased to soup and sauce 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.
“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 closing by the joint venture in recent weeks, according to the Observer.
The firms sold two industrial properties in Buena Park last month to an unidentified “consumer product business” for $53.3 million, according to the Observer. A year ago, they sold two industrial properties in Santa Fe Springs and Brea for $54 million, according to The Real Deal.
The industrial vacancy rate in Los Angeles County rose to 5.3 percent in the last quarter ending in June, marking the ninth consecutive quarter of rising rates since the tail end of the pandemic, according to NAI Capital.
Since the start of the year, the county has added 3.3 million square feet of new industrial space, resulting in 8.3 million square feet of negative absorption, with demand less than supply.
The San Fernando Valley is faring better than other submarkets, with the lowest industrial vacancy rate in L.A. County at 1.6 percent, as well as the lowest availability, at 3 percent, according to CBRE.
Meanwhile in Orange County, home to Fullerton, industrial vacancy rose to 2.1 percent last quarter, according to a separate analysis by CBRE, representing the seventh straight quarter of rising vacancy.
— Dana Bartholomew
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