During January and into February, Rexford Industrial Realty Inc acquired five industrial properties – including one in Santa Clarita – for an aggregate purchase price of $170 million.
The company acquired 24903 Avenue Kearny in Santa Clarita for $58.5 million, or $273 per square foot. The 214,436-square-foot, fully leased building is situated on 10.1 acres of land and is subject to a long-term lease with in-place rent estimated to be about 10 percent below market rates.
In January, Rexford also sold a Santa Clarita property at 28159 Avenue Stanford for $16.5 million. The 79,247-square-foot multi-tenant office/industrial building had 96 percent occupancy at the time of sale. Proceeds from the sale were reinvested into the acquisition of Avenue Kearny.
All the acquisitions were funded using a combination of cash on hand and 1031 disposition proceeds.
“We are pleased to maintain our strong momentum into 2022 as our transaction activity continues to demonstrate Rexford Industrial’s ability to capitalize upon our extensive research- and relationship-driven investment pipeline to acquire high-quality, irreplaceable industrial property with significant embedded value-creation potential within supply-constrained infill Southern California,” Howard Schwimmer and Michael Frankel, co-chief executives, said in a statement. “These investments are indicative of Rexford Industrial’s substantial go-forward growth opportunity driven by our proprietary access to the world’s fourth largest industrial market, which surpasses in size all global markets except the entire national markets of the United States, China and Germany. With over $450 million of additional investments under contract or accepted offer, plus a broad range of accretive internal growth initiatives underway, our low-leverage, fortress-like balance sheet supports the expansion of our best-in-class portfolio and our ability to generate above-market cash flow growth and value-creation for our stakeholders.”
The Santa Clarita property was one of the largest among Rexford’s purchases. The portfolio also saw the acquisition of a 29,760-square-foot port-adjacent building 444 Quay Ave. in Los Angeles’ South Bay for $10.8 million; 19475 Gramercy Place in Torrance for $11.3 million; 18455 South Figueroa St. and 501 W. 190th St. in Los Angeles for $64.3 million; and 14005 Live Oak Ave. in Irwindale for $25 million.