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.