SoCal Industrial Park Commands $211M
- Jul 21, 2017
Rexford Industrial Realty Inc. has acquired Rancho Pacifica Industrial Park, a six-building industrial campus in Rancho Dominguez, Calif., for about $210.5 million.
The complex is situated on 56 acres and consists of approximately 1.2 million square feet, being home to 23 tenants. It’s located adjacent to the Alameda Intermodal Corridor and is just six miles from the Ports of Long Beach and Los Angeles, offering access to five major freeways.
The buildings in the industrial park feature market-leading dock-high loading and 24- to 30-foot warehouse clearance within a unique gated, fully secured complex.
“This acquisition presented a rare opportunity to acquire a critical mass of six Class A industrial buildings within the highly desirable South Bay submarket, adjacent to the nation’s two largest ports and at the infill nexus of the nation’s largest regional population,” Howard Schwimmer and Michael Frankel, Rexford Industrial Realty’s co-CEOs, said in a prepared release. “The complex is 99 percent leased at in-place lease rates estimated to be approximately 25 percent below market, on average, presenting opportunities to increase cash flow as 76 percent of current tenant leases roll through the end of 2020.”
According to the most recent CBRE industrial market report, the vacancy rate in the South Bay industrial submarket stood at 0.6 percent in the first quarter of 2017.
The acquisition was funded through the company’s line of credit as well as the issuance of a $125 million note.
So far in 2017, Rexford Industrial Realty has completed nearly $500 million of acquisitions within infill Southern California industrial markets, and its CEOs said it remains focused on the execution of its internal and external growth strategies to increase cash flow and to drive long-term value creation for its shareholders.
Images courtesy of Yardi Matrix