Dealmaker: Rexford Industrial Acquires Two Industrial Properties For $28M
Real estate investment trust Rexford Industrial Realty, Los Angeles, acquired two southern California industrial properties for $27.6 million and sold three properties for $44.2 million.
The firm funded the acquisitions using cash on hand.
Rexford Industrial Co-CEO Howard Schwimmer said southern California features the nation’s lowest-vacancy and highest-demand industrial property market.
The company acquired 12133 Greenstone Avenue in Santa Fe Springs within the LA – Mid Counties submarket for $5.5 million or $26 per land square foot through an off-market transaction. The fully leased single-tenant facility contains a 12,500-square-foot truck terminal building on 4.8 acres. Excess land serves as truck parking. Rexford said it will reposition the property when the current short-term lease expires to provide greater functionality and increase rents to market rates.
CBRE reported the vacancy rate in the 112-million-square foot LA – Mid Counties submarket fell to just 2.2 percent during the third quarter.
On October 14, Rexford acquired 12772-12746 San Fernando Road in Sylmar in the LA – San Fernando Valley submarket for $22.1 million or $78 per land square foot. The 56 percent leased property includes a 6.4-acre development site currently containing two legacy industrial buildings totaling 140,840 square feet. Following a short-term lease period, existing buildings will be removed and Rexford will redevelop the site with a new 145,000-square-foot single-tenant Class A industrial building.
During the third quarter, the company sold a vacant single-tenant building at 3927 Oceanic Drive in Oceanside within the San Diego – North submarket for $10.3 million. It also sold a multi-tenant building at 121 West 33rd Street in National City in the San Diego – South submarket for $13.5 million. Finally, Rexford sold a two-tenant building at 2700-2722 South Fairview in Santa Ana within the Orange County – Airport submarket for $20.4 million.
The company said it expects to recycle proceeds from those three dispositions utilizing tax-deferred 1031 exchanges to fund future acquisition activity. Rexford Industrial now owns 232 properties totaling nearly 28 million rentable square feet.
