Rexford Acquires, Sells Industrial Properties in CA
- May 29, 2017
Rexford Industrial Realty Inc. acquired Safari Business Center in Ontario, Calif., for $141.2 million and completed the disposition of an industrial property in San Diego for $40.1 million.
The 52.2-acre Safari Business Center comprises 16 buildings totaling roughly 1.1 million square feet. The campus is currently 97 percent leased to 75 tenants, with spaces ranging from 7,000 to 36,000 square feet. Features include dock-high loading, 171 parking spaces, sky lights, low-finish floor plans and showrooms. The property is adjacent to the Ontario Airport within the Inland Empire West submarket.
The sold industrial property is located at 2535 Midway Drive and comprises two vacant multi-story buildings totaling 373,744 square feet. The property was originally purchased in October 2015 and was vacant at the time of the sale with substantial redevelopment near commencement.
Proceeds from the disposition were reinvested into the new acquisition through a 1031 exchange with the balance of the purchase funded utilizing Rexford’s line of credit.
“These two transactions exemplify Rexford’s value-add acquisition and accretive disposition opportunities within our core infill Southern California submarkets,” said Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford, in prepared remarks. “In October 2015, we acquired 2535 Midway Drive for $19.3 million and have been entitling our planned project repositioning. The Midway property was sold vacant, prior to the start of construction after receiving an unsolicited purchase offer at a substantial premium to its industrial market value from a buyer intending to convert the property to mixed creative office and residential use.”
Image courtesy of Yardi Matrix