Rexford Acquires Eight Properties for $270M

Sawtelle-based Rexford Industrial Realty Inc. had a busy close to the year, adding eight industrial properties for a total of $270 million to its portfolio.
The latest closings brought the company to $1.9 billion of industrial acquisitions in 2021. It now has a portfolio of 296 properties and 37.1 million square feet in Southern California.
 
“These eight investments, acquired through off-market and lightly marketed transactions, deliver substantial value creation and result from Rexford’s deep, local sharpshooter market knowledge and relationships, our value-add expertise and proprietary access to the infill Southern California market, the nation’s strongest, highest-demand and highest-barrier industrial property market,” Howard Schwimmer and Michael Frankel, Rexford’s co-chief executives, said in a statement.
 
The priciest acquisition was 4240 W. 190th St. in Torrance, which Rexford acquired for $75.3 million. The 307,000-square-foot industrial building is fully leased.
Rexford estimates that the two-tenant building is receiving rents 40% below market rates and plans to redevelop the site when the leases expire.

Rexford plans to create a single-tenant logistics facility on the site’s 11.6 acres.
Another asset, at 8911 Aviation Blvd. in Inglewood, sold for $32 million. The 4-acre property is fully leased to a single tenant and has 100,000 square feet worth of buildings. Once the current lease expires, Rexford plans to redevelop the site with two logistics buildings.
 
The South Bay is an incredibly tight industrial market. The vacancy rate in the area was a mere 0.6% at the end of the third quarter, according to data from CBRE Group Inc.

Rexford Industrial also acquired a property in City of Industry for $28.6 million. It is a 7.6-acre site with a 111,927-square-foot building. It was a sale-leaseback transaction in which the seller will continue to occupy the property.
 
Once the tenant’s lease expires, Rexford plans to redevelop the site.
Another asset in the San Gabriel Valley, at 2391-2393 Bateman Ave. in Irwindale, sold for $23.1 million, also in a sale-leaseback transaction. The 3.4-acre property has a 65,605-square-foot single-tenant industrial building.
 
Rexford purchased a third asset in the San Gabriel Valley, at 1020 Bixby Drive in City of Industry, for $16.4 million. The property has a fully leased, 56,915-square-foot warehouse building. Rexford estimates that the lease is 30% below market value and plans to reposition, re-tenant or renew the lease at a higher rate when the lease expires.
 
The vacancy rate in the San Gabriel Valley in the third quarter was 0.2%, according to CBRE data.
Rexford purchased a property at 2800 Casitas Ave. in Glassell Park for $43 million. The 5.7-acre site, which the company classifies as part of the San Fernando Valley, has a two-tenant industrial building with 117,000 square feet. Rexford estimates rents to be 60% below market rates and plans to renovate the site when the current lease ends.
 
The San Fernando Valley market had a 1.1% vacancy rate at the end of the third quarter, according to CBRE.
 
Rexford also purchased a handful of assets outside of L.A. County in December.
In Orange County, it purchased a property at 3071 E. Coronado St. in Anaheim for $28 million. Rexford plans to redevelop the 4.9-acre site with a new, nearly 107,000-square-foot building.

In the Inland Empire, the company purchased 1168 Sherborn Blvd. in Corona for $23.4 million. The property has a long-term sale-leaseback in place. Rexford estimates that rents for the 79,515-square-foot building are 25% below market value.

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