Rexford Expands SoCal Industrial Footprint
- Jul 06, 2020
Rexford Industrial Realty is continuing its buying spree of industrial properties in Southern California. The REIT’s latest acquisition includes five properties that total 434,000 square feet and are located in Greater Los Angeles. According to Rexford, the properties were purchased for $73.2 million with cash on hand.
In Los Angeles’ Sun Valley neighborhood, Rexford acquired a three-property industrial portfolio for $35.1 million in an off-market transaction. The 207,374-square-foot asset is fully leased and the company is exploring options of pursuing value-add enhancements and renewing the current leases.
In another off-market transaction, Rexford spent $28.1 million to acquire 15650-15700 S. Avalon Blvd. in Los Angeles. The two-building property offers 166,088 square feet on a 7.24-acre plot. Once the short-term leaseback in place expires, Rexford plans to reposition the property as a Class A single-tenant industrial property with dock-high loading and an oversized contained yard to attract tenants operating in the last-mile distribution sector.
In Fontana, some 50 miles east of Los Angeles, the REIT acquired 15850 Slover Ave. for $10 million in a lightly marketed transaction. Compared to the other properties, the Fontana industrial asset was newly constructed and vacant. The property offers 60,127 square feet on 2.79 acres and features 30-foot clear heights, ESFR sprinklers, a secured truck court and nearby freeway access.
Howard Schwimmer and Michael Frankel, Rexford’s co-CEOs, said in prepared remarks that the REIT will be looking to grow the cash flow of the five properties in various ways including raising below-market rents, conducting a value-add repositioning and leasing up a vacant property.
Additional Acquisitions in SoCal
With five more industrial properties acquired, Rexford is continuing its buying spree of industrial properties throughout Southern California. In June, the REIT purchased two industrial properties in Yorba Linda and San Diego for $14.7 million. Those acquisitions came on the heels of Rexford’s $203 million purchase in March of a 10-building portfolio located in Los Angeles and Orange counties.
With the latest acquisition, Rexford’s acquisitions in 2020 now total $342.9 million. Schwimmer and Frankel also said in prepared remarks that the REIT has a low-leverage balance sheet and substantial liquidity and is well-positioned to continue growing its portfolio of industrial properties in infill Southern California neighborhoods.