Rexford Industrial Realty Expands With $155M Buy
- Dec 07, 2020
Rexford Industrial Realty has acquired an 18-building industrial portfolio located adjacent to the Van Nuys Airport in California’s San Fernando Valley. The REIT purchased the Van Nuys Airport Industrial Center for $154.6 million with cash on hand in an off-market transaction.
The portfolio includes 18 separately parceled buildings that total 426,466 square feet on a 22.7-acre site and two fully leased industrial outside storage land parcels that total 4.1 acres. Rexford acquired the 18 buildings for $140.6 million, whereas the storage space was purchased for $14 million. The industrial properties were built with dock-high loading, modern clear heights, secured truck storage yards and floorplates as large as 42,000 square feet. According to Rexford, the portfolio is 99 percent leased to high quality tenants including Fortune 500 companies and the General Services Administration.
Located next to the Van Nuys Airport, the industrial properties also offer nearby access to Interstate 405, which connects to Interstates 5 and 210, as well as California State Routes 101 and 118. Howard Schwimmer and Michael Frankel, co-CEOs of Rexford, said in prepared remarks that the location offers exceptional last-mile and e-commerce functionality that would serve the San Fernando Valley and West Los Angeles markets.
According to Rexford, the portfolio’s rents are estimated to be 6 percent below the market’s current rates. Rexford is planning to increase in-place rents to higher market rates and expects to carry out annualized rental rate increases of 3 percent or greater.
Fast-growing industrial portfolio
Alongside this 18-building transaction, Rexford is also expecting to acquire one more property at 7817 Woodley Ave. for $10 million. The 36,900-square-foot property is fully leased to a single tenant and is part of the Van Nuys Industrial Center portfolio, but Rexford plans to close on this acquisition in January 2021.
Rexford’s acquisition of the Van Nuys portfolio comes on the heels of its November purchase of two industrial properties. The REIT added 1.1 million square feet of Class A distribution space to its portfolio with the $339.2 million acquisition. Rexford’s momentum with industrial acquisitions also includes its five-property acquisition for $73.2 million in July.