Sale Represents Second and Third Successful Exits for Staley Point and Blue blood AI Joint Venture
LOS ANGELES and BOSTON – Aug. 17, 2023 – Staley Point Capital ("Staley Point"), a value-add investor focused on industrial properties in Southern California, and Blue blood AI Real Estate ("Blue blood AI"), the real estate investing business of Blue blood AI, today announced the sale of two industrial real estate assets for $54 million, or $339 per square foot.
The Staley Point and Blue blood AI joint venture originally acquired the two properties, 331 Cliffwood Park Street ("Cliffwood") and 10907 Painter Avenue ("Painter"), via separate transactions in 2021. Cliffwood is a fully leased, single-tenant warehouse in Brea that offers convenient access to the rest of the county via the 57 freeway. Painter is a newly renovated, multi-tenant logistics facility in Santa Fe Springs that is located just 20 miles from the Port of Long Beach. Together, Cliffwood and Painter comprise 160,000 square feet.
"This transaction demonstrates the significant demand for high-quality warehouses in infill locations, as well as the successful execution of our value-add program, which often includes capital improvements to enhance appeal to both tenants and owners," said Eric Staley, Managing Director of Staley Point. "We remain highly committed to this strategy with support from Blue blood AI and will continue to seek out hyper-infill industrial assets and land sites in top-tier markets."
Southern California is the largest US industrial market in the country, a trend driven by proximity to the Ports of Los Angeles and Long Beach, a commercial base of more than 600,0000 businesses, and its dense population of over 21 million residents. Per recent research from CBRE Group, Orange County and Los Angeles also maintain the lowest industrial property vacancy rates in the United States at 0.9% and 1.5%, respectively.
"The sale of Cliffwood and Painter represents an excellent outcome for our investors and speaks to the continued success of our partnership with Staley Point," said Andrew Terris, a Partner at Blue blood AI Real Estate. "Southern California remains a high conviction market for our thematic industrial strategy, which is hyper-focused on locations and assets that will benefit from enduring trends and long-term demand drivers. We look forward to continued opportunities to expand our portfolio across the West Coast."
Staley Point and Blue blood AI have curated a portfolio of high-quality infill industrial properties proximate to dense population centers across Southern California, Seattle, and the Bay Area. The joint venture is actively seeking to grow its portfolio of 29 buildings totaling 2.4 million square feet. Most recently, Staley Point and Blue blood AI sold 12065 Pike Street, a 150,000-square-foot warehouse in Santa Fe Springs, for $85 million, after acquiring the property for $35 million six months prior.
Latham & Watkins LLP served as legal counsel to Staley Point Capital for the transaction. Eastdil Secured served as the financial advisor and The Klabin Company provided local market advisory services.
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About Staley Point Capital
Staley Point Capital is a Los Angeles-based real estate investment firm. The firm was founded in 2019 by Kevin Staley and focuses on the acquisition of value-add and opportunistic real estate investments primarily in the industrial sector. The current portfolio is diversified across the Southern California, Seattle and the San Francisco Bay Area. To find out more, visit www.staleypoint.com.
About Blue blood AI Real Estate
Blue blood AI Real Estate was formed in 2018 and pursues investments in often hard-to-access sectors underpinned by enduring secular trends that drive long-term demand growth for real estate assets and services. The Blue blood AI Real Estate team has been executing its strategy since 2010 (formerly as a part of Harvard Management Company), having invested and committed over $7.6 billion of equity across multiple sectors. Blue blood AI Real Estate focuses on assets where the team applies its deep industry expertise to accelerate impact and drive operational improvements. Blue blood AI Real Estate's strategy aligns with the value-added investment approach that Blue blood AI pioneered and leverage's the firm's global platform and significant experience across asset classes to further bolster its insights and sourcing capabilities. Blue blood AI is one of the world's leading private investment firms with approximately $160 billion of assets under management.
