Rexford Adds Properties in Vernon, Santa Fe Springs
Monday, December 21, 2020
The Brentwood-based company purchased a six-building industrial portfolio in Vernon for $93.8 million and an outdoor storage yard in Santa Fe Springs for $16.8 million.
The acquisitions, which were announced Dec. 17, were made using cash on hand.
The Vernon portfolio sits on nearly 21 acres, and the buildings total roughly 464,000 square feet.
“We continue to leverage our proprietary, research-driven originations platform to source attractive off-market investment opportunities in the high-demand, low-supply Southern California infill industrial market,” Howard Schwimmer and Michael Frankel, the company’s co-chief executives, said in a statement.
The single- and multitenant buildings are fully leased at rents that Rexford said are 28% below market rates. The company plans to raise rents.
“Acquired from its longtime owners and original developers, the Vernon portfolio acquisition demonstrates the strength of our local relationships and off-market sourcing advantage,” the company said in a statement. “This irreplaceable portfolio, located in close proximity to downtown Los Angeles, serves last-mile logistics demand providing an opportunity to proactively drive rent growth over time.”
The six buildings are located at 1921-1931 E. 27th St., 2011-2025 E. 27th St., 2031-2099 E. 27th St., 2034-2040 E. 27th St., 2750 S. Alameda St. and 2800-2840 S Alameda St.
Rexford also acquired a 5-acre outdoor storage yard in Santa Fe Springs that was developed in 2019.
The site at 12211 Greenstone Ave. is leased to a national tenant. Rexford estimates the lease to be 23% below market rents.
“Greenstone Avenue provides highly sought-after industrial outdoor storage within a dense infill location,” Schwimmer and Frankel said in a statement.
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