Dealmaker: Rexford Acquires $339M in Industrial Assets

Rexford Industrial Realty, Los Angeles, acquired seven industrial properties for $338.9 million. The real estate investment trust funded the purchases with cash on hand and its line of credit.

In a series of off-market transactions, Rexford acquired:

2880 E. Ana Street in Rancho Dominguez within the LA – South Bay submarket for $34.6 million. Following the near-term lease expiration, Rexford intends to redevelop the 3.7-acre site into an industrial outdoor storage yard. CBRE reported the vacancy rate in the 220-million-square-foot LA – South Bay submarket fell to 0.9% during the second quarter.

17909 and 17929 S. Susana Road in Rancho Dominguez for $26.1 million, or $245 per land square foot. The 57,375-square-foot two-building property on 2.5 acres is leased at rents nearly 45% below current market rates. Rexford said it intends to redevelop the site into a low coverage logistics facility when the current lease expires.

21022 – 21034 S. Figueroa Street in Carson in the LA – South Bay submarket for $24.2 million. The 51,185-square-foot Class A building is near the I-110 and I-405 freeways and the Ports of Los Angeles and Long Beach.

3901 Via Oro in Long Beach in the LA – South Bay submarket for $20 million. At lease expiration, Rexford intends to redevelop the fully occupied, industrial-zoned land site with a new 74,000-square-foot Class A industrial building. The site features immediate access to the I-405 and I-710 freeways near the Ports of Los Angeles and Long Beach.

920 E. Pacific Coast Highway in Wilmington within the LA – South Bay submarket for $100 million, or $271 per land square foot. The 148,185-square-foot port-adjacent logistics facility occupies 8.5 acres along the container trucking corridor.

6000-6052 and 6027-6029 Bandini Boulevard in Commerce and Bell, respectively. Both properties sit within the LA – Central submarket. Rexford paid $91.5 million for the two fully occupied Class A buildings. When the current leases expire, the company intends to renew existing tenants or re-lease the properties following a value-add repositioning plan.

A three-building industrial portfolio in City of Industry within the San Gabriel Valley submarket for $42.5 million. The 113,735-square-foot portfolio of Class A single-tenant buildings is fully occupied at rents nearly 50% below current market rates.