The properties were acquired using cash on hand and 1031 exchange proceeds. In a 1031 exchange, sellers can avoid paying capital gains taxes by reinvesting sale proceeds within a specific time frame.
The transactions were all completed in October and November.
The largest transaction by sales price was 14100 Vine Place in Cerritos. Rexford purchased the 119,145-square-foot building for $48.5 million. The single-tenant building takes up 34% of its 8.1 acre site.
The lease for the property is set to expire soon, at which point Rexford said it plans to add additional dock-high loading to the property and pave the extra land to create better storage space for future tenants.
The Mid-Counties industrial submarket is competitive and had a vacancy rate of 0.2% during the third quarter, according to data from CBRE Group Inc.
Rexford also purchased a property at 21515 Western Ave. in Torrance for $19 million. The company will redevelop the existing property, which has a 56,199-square-foot retail building, into an 85,520-square-foot warehouse and distribution building. The property sits on 4 acres and is already zoned for industrial use.
Rexford also acquired a 2.3-acre outdoor storage site at 12027 Greenstone Ave. in Santa Fe Springs for $8.1 million. Rexford estimates the rent for the property is 80% below market value. Once the current lease expires, Rexford plans to renovate the property into a container storage yard.
The company also recently acquired 6027 Eastern Ave. in Commerce. Rexford acquired the 3.9-acre property for $23.3 million. It plans to develop two buildings with a total of 92,800 square feet of warehouse distribution space at the site.
Rexford also purchased 340-344 Bonnie Circle in Corona for $27 million. The 5.2-acre site has a 98,000-square-foot single-tenant building.Rexford estimates that the current lease is 45% below market value.
Rexford also sold an asset at 2670-2674 Walnut St. and 89-91 San Gabriel Blvd. in Pasadena for $11.7 million. The 1-acre property, which has four buildings, was fully leased at the time of the sale. Money from the sale was used for the Corona acquisition.
“These investments demonstrate Rexford’s ability to leverage our value-add expertise … to generate substantially above-market cash yields and return on investment,” Howard Schwimmer and Michael Frankel, Rexford’s co-chief executives, said in a statement.
