Staley Point JV Buys Value-Add LA Warehouse

2187 Garfield Ave.

A partnership between Staley Point Capital and Bain Capital Real Estate has purchased a 132,000-square-foot cross-warehouse in Commerce, Calif., for $38.5 million, or $292 per square foot. The seller was a private investor represented by Kidder Matthews. CommercialEdge shows that Rolled Steel Products, a manufacturer of rolled steel roofing and panels, was the facility’s previous owner. JLL Capital Markets is working on behalf of the buyer to arrange acquisition financing.

Built almost 70 years ago, the warehouse is slated to undergo extensive upgrades. Repositioning plans call for the conversion of the asset into a single-tenant, last-mile distribution center.

Located at 2187 Garfield Ave., the 6.7-acre property offers 30-foot clear heights, a 280-foot truck court, three dock high doors and seven grade level loading doors. The warehouse is within a mile of Interstate 5, at the intersection of Garfield Avenue and East Washington Boulevard. The ports of Los Angeles and Long Beach are 23 miles from the property via Interstate 710 and Los Angeles’ historic core is some 10 miles northwest.

Located in a high barrier to entry market and in proximity to a high-density residential area, the property is set to attract future tenants, which is what determined the partnership to pursue the transaction, Staley Point Managing Director Eric Staley said in prepared remarks.

Southern California leads the way

The purchase of the Commerce warehouse is the tenth shared investment Staley Point and Bain Capital made in Southern California since joining forces in September 2020. Last month alone, the partnership acquired four industrial properties in Orange County, Santa Fe, Chatsworth and Torrance, at a combined cost of $71.3 million.

Between January and June, Southern California markets led the way in industrial transactions activity. Los Angeles ranked highest with nearly $2 billion in traded assets, followed closely by the Inland Empire’s $1.9 billion transaction volume.

High industrial demand and a tight construction pipeline—1.1 percent of existing stock—also pushed rents in Los Angeles to a $10.13 average–a 6.4 percent rise over 12 months. The metro was second only to the Inland Empire’s 6.9 percent rent increase, to $6.36.