Rexford Industrial Realty has bought a 200,000-square-foot industrial property in Panorama City for $90.2 million, or $451 per square foot.
Located at 14200-14220 Arminta St., the building is situated on 8.5 acres and is leased long-term to a credit tenant at rent estimated to be approximately 35 percent below current market rates.
The Panorama City purchase was part of a larger four-property portfolio which the REIT acquired for nearly $164 million. The other properties are located in Compton, Ontario and Fullerton.
“These investments, acquired through off-market transactions, reflect our team’s ability to leverage its regional sharpshooter advantage and value-add expertise within infill Southern California, the nation’s lowest-supply and highest-demand industrial market,” Howard Schwimmer and Michael Frankel, co-chief executives of Rexford Industrial, said in a statement. “Our proprietary market access positions the company to drive favorable cash flow growth as we capitalize upon our information advantage to … grow beyond our current portfolio comprising 39 million square feet of industrial properties, representing a 2 percent market share.”
The executives noted that Rexford’s year-to-date investments total $774 million.
CBRE First Vice President Michael Bogle represented Rexford in the Panorama City transaction. Bogle also represented the seller, Powell Plaza Associates, in the deal.
“This property sold at record pricing because of the incredibly low vacancy rate in the area and the quality of the tenant and the building, Bogle said in a statement. “They have made an incredible amount of improvements to the space and are leasing it long-term. This was a true flight-to-quality play.”
Last month, Rexford Industrial paid $153 million for a six-property portfolio that included another Panorama City property, located at 7815 Van Nuys Blvd. That property was acquired for $25 million, or $175 per square foot.