Rexford Buys $20M Inland Empire Industrial Asset
- Jul 25, 2017
Rexford Industrial Realty Inc. acquired an industrial property in the Inland Empire West submarket for approximately $19.8 million or approximately $99 per square foot. The acquisition was funded utilizing the company’s line of credit. The property is fully leased to a single tenant in the logistics industry, Three PI Worldwide, on a triple net basis at below-market rent.
Located on 9.3 acres at 11190 White Birch Drive in Rancho Cucamonga, Calif., the 201,035-square-foot industrial building features 26-foot clearances and 26 dock-high doors. The property provides easy access to interstates 10 and 15 and is close to Rancho Specialty Hospital. Dolphin Partners purchased the asset at the end of 1996 from PGIM Real Estate for $5.2 million.
The property is a 10-minute drive from four multi-tenant industrial buildings in Ontario, Calif., purchased earlier this month for $26.9 million.
Higher rental yields
The purchase brings the company’s 2017 acquisition volume to more than $512 million.
“This acquisition continues to demonstrate our ability to source off-market transactions across our supply-constrained target infill Southern California submarkets at compelling values,” said Co-CEOs Howard Schwimmer and Michael Frankel in prepared remarks. “This well-located property has significant rental upside, allowing us to capture near-term cash flow and, upon lease expiration, the potential to roll rents to higher market rates.” The Class B building was constructed in 1985 for two-tenant occupancy and upon lease expiration, could be converted accordingly to achieve higher rental yields.
According to CBRE, the vacancy rate in the 281 million-square-foot Inland Empire West submarket was 1.4 percent at the end of the second quarter of 2017.
Image via Yardi Matrix