Staley Point Capital and Bain Capital’s Bain Capital Real Estate have purchased an industrial property in Torrance for $34.5 million.
The 135,000-square-foot property is located at 2700 California St. It was formerly occupied and owned by auto parts designer and manufacturer Edelbrock.
The property has high clearance heights, six dock-high doors and 14 grade-level doors.
The acquisition is the joint venture’s first investment in the South Bay market and sixth since its launch in September 2020.
"We are pleased to have completed our first transaction in the South Bay," Kevin Staley, managing partner of Staley Point, said in a statement. "As rising rates in and around Los Angeles County are prompting businesses to find more cost-effective sub-markets, Torrance's retail amenities and proximity to the area's Beach Cities make for an attractive alternative destination."
In the first quarter the South Bay industrial market saw a vacancy rate of 2.2% compared with 2.4% the previous year, according to data from Jones Lang LaSalle Inc. The asking rent for properties during the quarter was $1.05 a square foot, up 1 cent year over year.
The area is also desirable because of its proximity to the ports of Los Angeles and Long Beach. The San Pedro Bay ports account for more than one-third of all U.S. waterborne trade, according to Staley Point Capital and Bain Capital.
"This transaction is consistent with our focus on identifying infill projects with strong underlying fundamentals that are situated near dense population centers," Andrew Terris, managing director at Bain Capital Real Estate, said in a statement. "Together, we are committed to unlocking investment opportunities across the region that have the redevelopment and repositioning potential to benefit from our unique operational and value creation capabilities."
Other acquisitions from the Staley Point and Bain Capital Real Estate joint venture include a 14-acre site in the Inland Empire and assets in Orange County, Santa Fe Springs and the San Fernando Valley.
Greenberg Traurig was legal counsel to Staley Point Capital for the South Bay transaction. CBRE Group Inc. represented the seller in the transaction and JLL will arrange the loan financing for the property.