Rexford Industrial Realty, a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, has acquired four industrial properties for $84.5 million in Southern California’s infill markets. The acquisitions were funded using cash on hand.
“We are pleased with our recent transaction activity as we continue to source attractive off-market and lightly-marketed investment opportunities in Southern California’s infill markets, the most sought-after industrial market in the country,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “With this acquisition of over 500,000 square feet of buildings, we continue to build what we consider to be an irreplaceable, highly-functional industrial property portfolio. These investments also demonstrate our ability to capture attractive in-place cash flows while also leveraging Rexford’s unique value-add capabilities to enable long-term cash flow growth and value creation. With $259 million of acquisitions completed year-to-date, we remain focused on executing our internal and external growth strategies to drive FFO per share growth for our shareholders.”
The Company acquired a 456,000 square foot portfolio comprising three industrial buildings located in supply-constrained infill submarkets, as follows:
- 13890 East Nelson Avenue, located in the City of Industry within the LA – San Gabriel Valley submarket, was acquired for $41.8 million, or $163 per square foot. The property consists of a modern industrial building containing 256,993 square feet on 11.77 acres and is 100% leased to a single tenant. The building features 24′ clear height, 36 dock positions and active rail service. According to CBRE, the vacancy rate in the 153 million square foot LA – San Gabriel Valley submarket was 1.4% at the end of the first quarter 2019.
- 445 West Freedom Avenue, located in Orange within the North Orange County submarket, was acquired for $18 million, or $194 per square foot. The property consists of a three-tenant industrial building containing 92,647 square feet on 4.06 acres of land and is 100% leased at below-market rents. The property features 24′ clear heights and 13 dock positions. According to CBRE, the vacancy rate in the 115 million square foot North Orange County submarket was 2.3% at the end of the first quarter 2019.
- 2270 Camino Vida Roble, located in Carlsbad within the North San Diego submarket, was acquired for $16.8 million, or $158 per square foot. The property consists of a multi-tenant industrial building containing 106,311 square feet on 6.34 acres and is currently 70% occupied. The Company intends to complete value-add functional and cosmetic upgrades to drive below-market rents to higher market rents while leasing the vacant space. According to CBRE, the vacancy rate in the 54 million square foot North San Diego submarket was 6.9% at the end of the first quarter 2019.
In a separate off-market transaction, the Company acquired 980 Rancheros Drive, located in San Marcos within the North San Diego submarket, for $7.9 million, or $173 per square foot. The property consists of a single-tenant industrial building containing 45,678 square feet on 2.84 acres of land and is 100% leased. The modern property features 24′ clearance, 3 dock positions, heavy power and a private yard. According to CBRE, the vacancy rate in the 54 million square foot North San Diego submarket was 6.9% at the end of the first quarter 2019.