Dealmaker: Rexford Industrial Realty Acquires Four Industrial Assets

Rexford Industrial Realty, Los Angeles, acquired four southern California industrial properties for $69.6 million.

The real estate investment trust owns and operates infill industrial properties in southern California. It funded the acquisitions with cash on hand, a line of credit and proceeds from selling two other southern California properties.

Rexford Co-CEO Howard Schwimmer called southern California the highest-demand industrial market in the country.

The company acquired 687 Eucalyptus Avenue in Inglewood, Calif., for $53.9 million, or $376 per square foot. The single-tenant industrial building contains 143,500 square feet and is fully leased by Federal Express Corp. The recently completed property is the closest modern distribution facility to service last-mile e-commerce delivery within the densely populated West Los Angeles submarket.

To fund the 687 Eucalyptus Avenue acquisition, the company sold 12345 First American Way in central San Diego for $7.6 million. The single-tenant industrial property contains 40,000 square feet on 2.6 acres. In a separate transaction, Rexford sold 9401 DeSoto Avenue in the San Fernando Valley submarket for $23 million. Proceeds from both asset sales were recycled in a tax-deferred 1031 exchange.

In the Los Angeles-South Bay submarket, Rexford acquired a two-property portfolio, 15401 South Figueroa Street and 13225 South Western Avenue, for $6.7 million, or $112 per square foot. 15401 South Figueroa contains 38,500 square feet and 13225 South Western Avenue contains 21,000 square feet. Both properties are 100 percent leased at “substantially” below-market rents to occupants with less than six months average lease term remaining, Rexford said. 

CBRE reported the Los Angeles-South Bay submarket had just 0.8 percent industrial real estate vacancy in the third quarter.

Rexford also acquired an improved land site at 8542 Slauson Avenue in Pico Rivera in the Los Angeles-Central submarket for $9 million, or $49 per square foot of land. The low-coverage single-tenant property includes a 25,000-square-foot industrial building on 4.2 acres. The property is fully leased at below-market rates to a publicly traded tenant.