Rexford Industrial has purchased a cold storage facility in Commerce for $18.2 million, CBRE Group announced Dec. 19.
CBRE’s Mark Shaffer, Anthony DeLorenzo, Gary Stache, Doug Mack, Jeff Stephens and Art Rasmussen represented the seller, the Guardian Life Insurance Company of America.
“The transaction received strong interest and multiple offers, reflecting great demand for quality industrial assets in gateway locations,” Shaffer said in a statement.
Rexford represented itself in the transaction. It acquired the property using cash on hand.
The 4.33-acre property at 6100 Sheila St. is 100 percent leased to seven tenants. The building has 40 dock loading positions.
“This acquisition demonstrates our ability to source accretive industrial property investments within Southern California’s highly sought-after infill sindustrial market at prices significantly below replacement cost,” said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of Rexford, in a statement. “Sheila Street is a fully-leased multi-tenant cold storage building located in a high-demand, supply constrained submarket. This investment provides an opportunity to deliver small- to mid-sized cold storage spaces that are otherwise cost-prohibitive to construct and offer a cost-efficient, highly-valued solution to tenants seeking alternatives to higher-cost third-party-managed warehouses.”
Rexford will make the building more functional and energy efficient, which could bring in higher rates, the company said.
It’s been a busy time for the industrial market in L.A. as demand grows due to e-commerce and fast shipping promises. Industrial vacancies in Commerce are below 1 percent, according to Shaffer.
Commercial real estate reporter Hannah Madans can be reached at firstname.lastname@example.org. Follow her on Twitter @HannahMadans