A 78,000 square foot industrial property in Poway has been purchased for an estimated $20 million by two investment firms seeking West Coast infill sites.

For Staley Point Capital,  an investor focused on West Coast industrial properties, and Bain Capital Real Estate, the real estate investing arm of Bain Capital, it is the third acquisition in the San Diego County market after two deals in Vista two months ago.

Located at 13450 Stowe Drive in Poway, the new purchase includes a building that is 100% leased to a long-standing global credit tenant. The price breaks down to $251 per square foot which is a significant discount to physical replacement cost.

“The closing of this transaction is a continuation of our infill industrial strategy focused on quality assets in dense, supply constrained markets,” said Eric Staley, managing partner of Staley Point, in a news release. “The asset is leased to an investment-grade tenant in a high-demand submarket with significant defense, healthcare and near-shoring activity.”

The property is located in an area that is one of the best performing submarkets in San Diego with 2.4% vacancy as of the first quarter and 6% rent growth annually over the last 10 years, according to JLL.

“We are pleased to continue to increase our exposure to the last-mile industrial sector in an attractive market with strong, long-term fundamentals,” said Andrew Terris, a partner at Bain Capital. “This is a high-quality asset that is complementary to our West Coast industrial portfolio and we look forward to pursuing additional investments in the region with the Staley Point team.”

Staley Point Capital, a Los Angeles-based real estate investment firm founded in 2019 by Kevin Staley, focuses on the acquisition of value-add and opportunistic real estate investments. The current portfolio is diversified across Southern California, Seattle and the Bay Area.

Bain Capital Real Estate, formed in 2018, has invested and committed over $7.7 billion of equity across multiple sectors since 2010, when it was a part of Harvard Management Company. Bain Capital is one of the world’s leading private investment firms with approximately $185 billion of assets under management.