Dealmaker: Rexford Industrial Acquires Two Industrial Assets for $22M

Rexford Industrial Realty, Los Angeles, acquired two southern California industrial properties for $21.5 million.

The real estate investment trust focuses on owning and operating both core and value-add industrial properties in southern California infill markets. It funded the acquisitions through cash on hand, an existing line of credit and reinvesting disposition proceeds.

Rexford Co-CEO Howard Schwimmer noted one asset is a leased property and the other a vacant, value-add opportunity. “The leased property provides an attractive initial cash return with longer-term opportunities to reposition to higher market rents. The value-add acquisition was acquired off-market and is expected to stabilize with a strong cash yield,” he said.

The company acquired the leased property, 660 and 664 North Twin Oaks Valley Road in San Marcos, Calif., for $14 million or $144 per square foot. The two fully leased industrial buildings total 97,000 square feet.

In an off-market acquisition, Rexford also acquired 1580 West Carson Street in Long Beach, Calif., for $7.5 million–$171 per square foot. The seller vacated the property immediately prior to closing and Rexford plans to reposition the building, adding offices and modern industrial attributes including early suppression/fast response sprinklers and extensive dock-high loading.

CBRE reported the vacancy rate in 1580 West Carson Street’s 223-million-square-foot Los Angeles South Bay submarket fell to 0.8 percent in the first quarter.

The company also sold 6770 Central Avenue Building B in Riverside Calif. for $1.7 million. The vacant building contains 11,800 square feet. It recycled proceeds from selling this non-core asset in a tax-deferred 1031 exchange to fund a portion of the Carson Street acquisition.