Rexford Industrial Building acquired four industrial assets in Southern California, in off-market transactions totaling $82.7 million. The company funded the acquisitions with a combination of cash on hand, operating partnership units, proceeds from future stock settlements, and Rexford Industrial’s line of credit.
Properties the company purchased in March include 700-806 W. 14th St. and 701-733 W. Anaheim St. in the South Bay area of Los Angeles; 19900 Plummer St. in the LA San Fernando Valley; 6245 Providence Way in the Inland Empire and 13711 Freeway Drive in the LA-Mid-Counties region.
Additionally, in the first quarter, Rexford Industrial made a total of $458 million in investments. Of those, 85% were bought in off-market or lightly traded deals, according to remarks prepared by Howard Schwimmer and Michael Frankel, co-CEOs of Rexford Industrial.
Focus on Southern California
The company purchased 700-806 W. 14th St. and 701-733 W. Anaheim St. in Long Beach, Calif., for $24 million. The property is a 123,532 square foot industrial park located on 4.8 acres less than 2 miles northwest of downtown Long Beach. According to data from CommercialEdge, the property also includes 3,000 square feet of retail space, as well as 164 parking spaces at a ratio of 1.4 spaces per 1,000 square feet of parking. The property’s tenants include companies such as California Food Trucks, Peytch’s Automotive, Wilorco and THA Connection. Lee & Associates currently provides brokerage services for the property.
19900 Plummer Street in Chatsworth, CA, traded for $15 million. Rexford Industrial plans to either redevelop the site into an industrial zone by constructing a 78,000 square foot Class A warehouse and remove the existing building, or renew the agreement with incumbent tenant Phillips Graduate University at the expiration of his lease. Originally built in 1983, the property was completely renovated in 2015, according to data from CommercialEdge. A total of 252 parking spaces are currently available, at a parking ratio of 5.8 spaces per 1,000 square feet.
Located on 2 acres in Eastvale, Calif., in the Inland Empire–West submarket, the 27,636-square-foot 6245 Providence Way traded for $9.7 million. hunting partners was the seller. When the current lease expires, Rexford Industrial plans to re-let the property, as the current rent is estimated to be 40% below market rate. Socal Service Development is the sole tenant of the property built in 2017, according to data from CommercialEdge. CBRE provides brokerage services for the asset.
Rexford Industrial paid the highest sum for 13711 Freeway Drive in Santa Fe Springs, Calif., which traded for $34 million in a short-term sale-leaseback transaction. The company plans to construct a 108,000 square foot Class A building on the 5 acre site. The seller was Martinez Truckingwhich will continue to lease the property built in 1966. The asset fronts on Interstate 5, providing easy access to Los Angeles
The acquisitions align with Rexford Industrial’s strategy to invest in Southern California infill sites. Last month, the company purchased a 231,769 square foot office campus at Chatsworth Business Park in Chatsworth, Calif., for $42 million in another off-market deal. Earlier in February, the company made five additional acquisitions in Southern California for a total of $170 million.
