The two buildings acquired by Bay West are 100% leased to the Colton-based Stater Bros. grocery chain, which occupies the space on a triple-net basis and uses it as a warehouse and distribution center. Barbara Emmons of CB Richard Ellis Inc. in Glendale tells GlobeSt.com that GSIC has owned the 19-year-old industrial site for about five years, but wanted to divest it because it was GSIC's only industrial asset in a US portfolio consisting primarily of office properties.

Emmons, along with Darla Longo and Jim Koenig of CB Richard Ellis in Ontario, represented GSIC, with Bay West Equities representing itself. The deal closed at a 10.4% cap rate, according to Bay West, which says the acquisition brings its total of property purchases to $60 million since the San Francisco firm began building the portfolio two years ago.

Bay West secured long-term financing for the deal through Jeff Eliason of Buchanan Street Partners and Mitch Zeemont of Newmark Realty Capital, both in their firms' San Francisco offices. Bay West says it completed the requirements of a large 1031 Exchange in acquiring the building.

Jerry Lynch, CEO of Bay West, says the company was attracted to both the property and the growing economy in the Inland Empire, where commercial markets have outperformed most of the country in recent years. Bay West Equities is an affiliate of Bay West Properties, which Lynch founded in 1978. Bay West Properties' portfolio includes industrial properties, mobile home parks, condominiums, hotels and apartments with a market value of about $210 million.

Bay West Equities says it plans to build the portfolio further by investing in select markets in Northern and Southern California, along with Hawaii. The firm's goal is to acquire $50 million to $75 million in new holdings this year and several years thereafter.