Brentwood-based Rexford Industrial Realty Inc. has acquired six industrial properties for a combined $152.7 million in April and May.
“Acquired through off-market and lightly marketed transactions, these investments demonstrate the strength of Rexford Industrial’s differentiated operating platform,” Howard Schwimmer and Michael Frankel, co-chief executives of the company, said in a statement.
“Our team’s entrepreneurial approach enables us to continue securing assets positioned to deliver substantially greater return on investment and cash flow growth as compared to prevailing market yields otherwise generally available to investors within infill Southern California, the nation’s largest and most sought-after industrial market,”.
Two of the properties were in the San Fernando Valley industrial submarket.
The first, at 7815 Van Nuys Blvd. in Panorama City, sold for $25 million. When current leases expire, Rexford will remove what is currently on the property and construct a 77,000-square-foot industrial building. The project will generate a 4.7% yield on investment once it is stabilized, according to Rexford.
Rexford also purchased a property at 900-920 Allen Ave. in Glendale for $25 million. The property has two industrial buildings with a combined 68,630 square feet on 3.3 acres.
There are roughly 181 million square feet of industrial product in the San Fernando Valley submarket, which had a vacancy rate of a mere 0.5% at the end of the first quarter, according to data from CBRE Group Inc.
Further south, Rexford purchased a property at 13535 Larwin Circle in Santa Fe Springs for $15.5 million. The property consists of a 56,011-square-foot building on 2.5 acres of land. The company may renew the lease or do a value-add repositioning of the asset.
To the east, Rexford acquired two properties in Ontario. The first, at 1154 Holt Blvd., was purchased for $14.2 million in a short-term sale leaseback agreement. The property, which is newly built, has a 35,000-square-foot building on 1.7 acres.
The other Ontario asset, at 1550-1600 Champagne Ave., sold for $46.9 million. The property, which sits on 6.4 acres, has two buildings with a combined roughly 124,000 square feet. The property is leased at rates 50% below current market rents, according to Rexford. The company plans to re-lease it at market rent.
The vacancy rate in the Inland Empire-West submarket was 0.1% during the first quarter, according to CBRE.
Also in the Inland Empire-West submarket, Rexford purchased a property at 10131 Banana Ave. in Fontana for $26.2 million. The site, which is 5.5 acres in size, is an outdoor storage site. Rexford plans to redevelop the property into a 104,000-square-foot industrial logistics building when current leases expire.
