Beam alignment is key in enabling millimeter wave and terahertz radios to achieve their capacity. Due to the use of large arrays in these systems, the common exhaustive beam scanning results in a substantial training overhead. Prior work has addressed this issue, by developing compressive sensing (CS)-based methods which exploit channel sparsity to achieve faster beam alignment. Unfortunately, standard CS techniques employ wide beams and suffer from a low signal-to-noise ratio (SNR) in the channel measurements. To solve this challenge, we develop an IEEE 802.11ad/ay compatible technique that takes an in-sector approach for CS. In our method, the angle domain channel is partitioned into several sectors, and the channel within the best sector is estimated for beam alignment. The essence of our framework lies in the construction of a low-resolution beam codebook to identify the best sector and in the design of the CS matrix for in-sector channel estimation. Our beam codebook illuminates distinct non-overlapping sectors and can be realized with low-resolution phased arrays. We show that the proposed codebook results in a higher received SNR than the state-of-the-art sector sweep codebooks. Furthermore, our optimized CS matrix achieves a better in-sector channel reconstruction than comparable benchmarks.