Industrial Real Estate Buzz: $54 Million Shift in Southern California
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Episode Transcript:
Today, we're delving into real estate action in Southern California. Staley Point Capital and Bain Capital Real Estate have orchestrated a substantial deal. Two industrial properties, spanning a total of 160,000 square feet, have changed hands for $54 million, or around $339 per square foot. The new owner? Walton Street Capital, as reported by CommercialEdge.
Legal guidance came from Latham & Watkins, while Eastdil Secured provided financial advice. The Klabin Co. contributed local market insights, rounding out the team effort behind this transaction.
Interestingly, these two properties had each gone through separate transactions in 2021, amounting to a combined $35.2 million.
Now, let's focus on the properties themselves. One was built in 1977 at 333 Cliffwood Park St. in Brea, California. The other, a warehouse from 1993, sits at 10907 Painter Ave. in Santa Fe Springs. They offer clear heights of 24 and 22 feet, sky lights, sprinkler systems, exhaust fans, office areas, truck courts, and ample parking space.
The Brea property was fully occupied by Corporate eWaste Solutions at the time of the sale. The Santa Fe Springs facility, recently renovated, hosts multiple tenants, including Concord USA Corp.
Remarkably, these two industrial properties are situated less than 11 miles apart. The Brea site is in Orange County, near highways 57 and 90, just 9 miles from Anaheim. On the other hand, the Santa Fe Springs property is close to interstates 5 and 605 in Los Angeles County, approximately 22 miles from The Port of Long Beach.
Looking at the bigger picture, despite economic challenges and investment fluctuations in various commercial sectors, the industrial segment remains robust. A recent CommercialEdge report highlights the strong demand for industrial assets. In the first half of 2023, western markets secured investments totaling $6.52 billion by June.
Zooming in on Southern California, Orange County registered $301 million in traded industrial assets. Meanwhile, Los Angeles stood out with a substantial sales volume of $1.2 billion.
Notable transactions in the area include Rexford Industrial's $210 million acquisition in Santa Fe Springs. This fully occupied industrial space spans over 595,000 square feet and is conveniently close to the Painter Avenue warehouse.
In April, an 851,131-square-foot industrial portfolio encompassing Orange County and Los Angeles County properties was sold for $263 million. This purchase was made by a joint venture involving three companies.
Southern California's industrial real estate scene is dynamic. Despite challenges, investments continue to flow, showcasing the sector's resilience. As the spotlight remains on this ever-evolving landscape, keep an eye on the ongoing real estate developments and transactions...
This is Tyler Cauble, Signing off