Rexford Sells 1, Acquires 2 CA Industrial Properties
- May 03, 2018
After paying $17.2 million for an industrial property in Cerritos, Calif., in March, Rexford Industrial Realty Inc. has acquired two more industrial assets for $21.5 million, in addition to selling one for $1.7 million, all located in Southern California infill markets.
The firm purchased 660 and 664 N. Twin Oaks Valley Road in San Marcos, Calif., for $14 million, or $144 per square foot. The two buildings are 100 percent leased and feature extensive dock-high loading, sustainable power and a 180-foot shared truck court. Comprising 96,993 square feet, the properties are situated on 4.9 acres of land, with the company planning to either renew or re-tenant the asset upon lease expiration.
The second acquisition was for 1580 W. Carson St. in Long Beach, in which Rexford paid $7.5 million, or $171 per square foot. With direct access to the 405 and 710 freeways, the property encompasses 43,787 square feet on 2.5 acres. Prior to the purchase, the seller vacated the building. The asset offers 28-foot clear heights and the firm plans to upgrade the property to include high-image offices, ESFR sprinklers and extensive dock-high loading.
In addition to purchasing the two industrial properties, Rexford also sold one. Located in the Inland Empire East submarket, 6770 Central Ave. Building B sold for $142 per square foot. The 11,808-square-foot building is currently vacant and sits on a one-acre site. Proceeds from the disposition of this non-core asset were recycled in a tax deferred 1031 exchange to fund a portion of the Carson Street acquisition.
“These transactions, one a leased investment and the other a vacant, value-add opportunity, further demonstrate our ability to source core and value-add investment opportunities within our target infill Southern California industrial markets at attractive yields,” said Howard Schwimmer and Michael Frankel, co-chief executive officers at Rexford, in prepared remarks. “The leased property provides an attractive initial cash return, with longer term opportunities to reposition to higher market rents. The value-add acquisition was acquired off-market and is expected to stabilize with a strong cash yield.”
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