Staley Point JV Sells 2 Orange County Assets for $53M
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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