Rexford Industrial Realty Inc. has acquired eight industrial properties for a total of $205 million. The Sawtelle-based company used cash on hand for the acquisitions.
“These investments reflect our team’s ability to leverage its regional sharpshooter advantage and value-add expertise to deepen our presence within infill Southern California, the nation’s most sought-after industrial market, while generating substantially above-market return on investment,” Howard Schwimmer and Michael Frankel, co-chief executives of Rexford, said in a statement. “With over $500 million of additional investments under contract or accepted offer, plus a broad range of accretive internal growth initiatives underway, we are well positioned with a low-leverage, fortress-like balance sheet to generate significant value-creation for our stakeholders.”
The eight acquisitions were made in February and March.
The largest by purchase price was a portfolio of four properties at 14243 Bessemer Street in Van Nuys, 2970 E. 50th St. in Vernon, 17011-17027 S. Central Ave. in Carson and 2843 Benet Road in Oceanside. Rexford acquired the portfolio for $65 million.
The properties total 150,700 square feet and sit on a total of 8.8 acres. They are fully leased with long-term absolute net leases in place. In an absolute net lease, the tenant is responsible for everything from maintenance to property taxes.
The second-largest by purchase price was an industrial complex in Ventura County which sold for $57 million.
It was acquired in a sale-leaseback agreement and has three industrial buildings on 15 acres. In a sale-leaseback agreement, the company selling a property immediately leases it. This allows the company to receive a capital infusion from the sale without leaving the building.
The vacancy rate in Ventura County was 0.6% at the end of 2021, according to data from CBRE Group Inc.
In Los Angeles, Rexford purchased an asset at 21415-21605 Plummer St. in Chatsworth for $42 million. The property was purchased in an off-market transaction.
When current leases expire, Rexford plans to redevelop the site. The company will remove the existing 231,769-square-foot building and replace it with two warehouse buildings totaling 182,000 square feet. The property is 9.1 acres.
In the L.A. Central submarket, Rexford acquired a property at 1501-1545 Rio Vista Ave. for $28 million in an off-market transaction.
The 2.1-acre site has two industrial buildings with a total of 54,777 square feet. Rexford estimates the rents at the properties are 50% below current market rates. The company plans to upgrade and re-lease the property at market rents once the current leases expire.
In the Inland Empire, Rexford purchased a property at 13700-13738 Slover Ave. in Fontana for $13.2 million. When the current lease expires, Rexford plans to create a 95,000-square-foot single-tenant warehouse building on the 4.2-acre site.
