They can't make the pain of paying capital gains taxes completely disappear, but they offer some solace.

"The risk is that you end up behind the curve and you have to tighten policy more quickly than you'd prefer."

The 187,884-square-foot portfolio includes properties ranging from 4,000 square feet to 26,000 square feet.

Bain Capital Real Estate and BARDAS Investment Group have submitted plans to the City of Los Angeles for the development.