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 14200-14220 Arminta St., the building is situated on 8.5 acres and is leased long-term to a tenant at rent estimated at about 35 percent below current market rates.
The Panorama City purchase was part of a larger four-property portfolio, which the Los Angeles-based REIT acquired for nearly $164 million. The other three 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. 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,” Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford Industrial, said in a statement. “Our year-to-date investments total $774 million, of which over 85 percent were acquired through off-market or lightly marketed transactions. With over $600 million of additional investments under contract or accepted offer, plus a breadth of value-add internal growth initiatives under-way, we are well positioned with a low-leverage balance sheet to drive superior long-term shareholder value.”
CBRE Group First Vice President Michael Bogle represented Rexford in the transaction. Bogle also represented the seller, Powell Plaza Associates, in that deal. About the Panorama City property, Bogle said: “This property sold at record pricing because of the incredibly low vacancy rate in the area and the high-quality tenant. They have made an enormous 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.