Staley Point Capital Buys Two Development Sites in Inland Empire

Staley Point Capital, in joint venture with Bain Capital Real Estate, has acquired a two development sites in the Inland Empire for $37 million. The purchase includes a 7.4-acre land site in Corona, CA and a 4-acre land site in Fontana. The develop plans to build 250,000 square feet of industrial on the two properties. Both sites were purchased in off-market transactions.

Located on Smith Avenue, the Corona development site is an assemblage of three parcels from three different sellers for total purchase price of $24.6 million. The sites are located at 212, 216, and 220 Smith Avenue.

Located at 15363 Arrow Route, the Fontana development site traded hands for $12.3 million. It is permitted for outdoor storage, providing an opportunity cash flow for the developer while it pursues a class-A warehouse development.

The Inland Empire is the leading industrial market in the country. It currently has a .8% vacancy rate, according to data from Newmark, and it wracked up more than 5 million square feet of absorption in the fourth quarter of last year. According to the report, tenants are agreeing to landlord terms when leases are up for renewal without negotiation, and lease rates have climbed to $.92 per square foot.

Staley Point Capital and Bain Capital Real Estate have been actively buying properties in the Southern California region. Last year, the duo acquired a 55,000-square-foot industrial infill property in Santa Fe Springs, CA, from Astro Paper, a family-owned distributor of fine papers and envelopes, it underwent a renovation prior to being purchased with refurbishments including a new roof and 3,500 square feet of renovated office.

This year, the joint venture has acquired 12065 Pike St., a 159,964 square-foot infill industrial asset in Santa Fe Springs, California, for $35 million, and 18689 Arenth Ave., a 97,000 square-foot industrial asset in San Gabriel Valley’s City of Industry, for $22 million. Both transactions took place in January 2022.

In the Fontana and Corona deals, Winston & Strawn served as legal counsel for the join venture, and JLL Capital Markets will arrange the financing. Voit Commercial represented both the buyer and seller in the Corona transaction, while Kidder Mathews represented the buyer and seller for the Fontana deal.