Dealmaker: Rexford Industrial Realty Acquires Eight Industrial Properties for $270M

Rexford Industrial Realty, Los Angeles, acquired eight southern California industrial properties for $270 million.

The real estate investment trust, which focuses on industrial properties in California infill markets, acquired the assets through off-market and lightly marketed transactions. It funded the acquisitions using cash on hand and proceeds from forward equity settlements.

Southern California is the country’s highest demand and highest-barrier industrial property market, Rexford said.

The new acquisitions included:

2391-2393 Bateman Avenue in Irwindale, within the LA – San Gabriel Valley submarket for $23.1 million, or $352 per square foot. The 65,605-square-foot, single-tenant Class A facility occupies 3.4 acres.

1020 Bixby Drive in City of Industry, within the LA – San Gabriel Valley submarket for $16.4 million, or $287 per square foot. The 56,915-square-foot warehouse building is fully leased at a rate nearly 30 percent below market rates. Upon lease expiration, Rexford plans to drive cash flow growth through either value-add repositioning and re-tenanting or through lease renewal at market rent.

2800 Casitas Avenue in Los Angeles within the LA – Greater San Fernando Valley submarket for $43.0 million, or $368 per square foot. The 5.7-acre site contains a 117,000-square-foot two-tenant industrial building leased at rates nearly 60 percent below market rates. Rexford intends to upgrade the building to a state-of-the-art last-mile warehouse/distribution facility when the current lease expires.

4240 W. 190th Street in Torrance, within the LA – South Bay submarket for $75.3 million, or $149 per square foot. The company plans to redevelop the 11.6-acre site into a Class A single-tenant logistics facility upon lease expiration.

Elsewhere in the LA – South Bay submarket, Rexford acquired 8911 Aviation Boulevard in Inglewood for $32.0 million, or $183 per square foot. The four-acre covered land site contains 100,000 square feet of buildings adjacent to the Los Angeles International Airport.

CBRE, Dallas, reported the vacancy rate in the 218-million-square-foot LA – South Bay submarket fell to just 0.6% at the third quarter’s close.