LOS ANGELES– Staley Point Capital (“Staley Point”), a value-add investor focused on infill industrial across the West Coast, today announced the off-market acquisition of 5530 Beach and 5609 River in Buena Park, CA. The two buildings, totaling 166,066 square feet on 9.2 acres, were acquired in a sale-leaseback transaction for $41 million, which is $247 per building foot or $102 per land foot. This transaction marks Staley Point’s fourth Orange County investment in the last 12 months.
The two institutional-quality, 28-foot clear height properties have been leased back to the seller. The Buena Park site is less than 1.5 miles from the I-5 Highway and is well-positioned between the wealthy suburbs of Orange County (30 minutes), the ports of Los Angeles and Long Beach (30 minutes), and the Inland Empire (45 minutes).
“We are pleased to continue growing our industrial portfolio in Orange County,” said Eric Staley, Managing Director of Staley Point. “The transaction’s compelling credit income, visibility on Beach Blvd, close proximity to prime executive housing and significant supply constraints in the market were all compelling factors in our decision to acquire this asset.”
Orange County continues to benefit from the strong tailwinds across the industrial sector with limited new supply. Over the last 24 months, nearly 25 million square feet, or almost 10% of the region’s entire inventory, has been converted to higher and better commercial uses while rents increased 23% in 2021, according to CBRE. In North Orange County, the largest submarket for industrial property within Orange County, the vacancy rate was only 2.3% as of Q4 2021.
The acquisition was completed via a joint venture between Staley Point Capital and Bain Capital Real Estate. The vehicle has been an active acquiror of infill industrial properties on the West Coast since launching in September 2020. Most recently, Staley Point acquired two land sites for redevelopment in the Inland Empire this week. The firm also purchased 12065 Pike St., a 159,964 square-foot infill industrial asset in Santa Fe Springs, California, for $35 million.
Winston & Strawn served as legal counsel to Staley Point Capital for the transaction. JLL represented both the seller and arranged the loan financing.
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. Notable Southern California investments have included The Citadel in the City of Commerce, Magellan Gateway in El Monte and a self-storage portfolio, Magellan Storage. To find out more, visit www.staleypoint.com.
