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Rexford Purchases 10 Industrial Properties

Rexford Industrial Realty Inc. closed out the fourth quarter with the acquisition of 10 industrial properties — including a Van Nuys warehouse on Haskell Avenue — for an aggregate purchase price of $336 million 

The transactions were funded using a combination of cash on hand and proceeds from forward equity settlements and were part of $2.4 billion worth of acquisitions that the Brentwood-based company made last year.  

“Our $2.4 billion of acquisitions completed in 2022 demonstrate Rexford Industrial’s ability to drive substantial, above-market value creation and return on investment, while highlighting our unique position as the nation’s largest pure-play U.S.-focused industrial REIT,” Howard Schwimmer and Michael Frankel, co-chief executive officers, said in a statement.  

In the San Fernando Valley, Rexford purchased 7817 Haskell Ave. in Van Nuys for $11.1 million, or $128 per land square foot. The 2-acre industrial outdoor storage site is 100% leased to a single tenant. 

According to CBRE Group Inc., the vacancy rate in the 177 million square foot San Fernando Valley submarket was 0.5% at the end of the third quarter.

The other purchases were made throughout Los Angeles County.

In Rancho Dominguez, Rexford acquired 3131 E. Harcourt St. and 18031 S. Susana Rd. for $27.5 million, or $208 per land square foot. The 3-acre site is located immediately adjacent to a 2.5-acre site the company had acquired in August. 

Once current leases expire, Rexford plans to redevelop the combined sites into a logistics facility containing a 34,000-square-foot building and an oversized container storage yard. 

The vacancy rate in the 221-million-square-foot L.A. – South Bay submarket was 1.2% at the end of the third quarter 2022, according to data from CBRE.

Also in the South Bay, Rexford acquired a property at 14400 S. Figueroa St in Gardena for $49 million, or $234 per land square foot. The 4.8-acre site is located adjacent to a 1.0-acre site Rexford acquired in July. 

The company intends to reposition the combined site into a logistics facility containing a 57,000-square-foot cross dock building and oversized container storage yard. 

Rexford also purchased a five-property portfolio in the South Bay and Inland Empire submarkets for $198.1 million, or $382 per square foot. The properties are located at 2130-2140 E. Del Amo Blvd. and 20455 S. Reeves Ave. in Carson; 19145 Gramercy Place in Torrance; and 14874 Jurupa Ave. and 10600 Mulberry Ave. in Fontana. In aggregate, the portfolio totals 518,931 square feet on 24.6 acres of land and is 100% leased to six tenants. 

According to CBRE, the vacancy rate in the 329 million square foot Inland Empire – West submarket was 0.4% as of third quarter 2022.

Rexford acquired a property at 755 Trademark Circle in Corona for $10.5 million, or $305 per square foot. The 34,427-square-foot building situated on 1.6 acres is leased to a single tenant through a long-term sale-leaseback. 

A property at 4500 Azusa Canyon in Irwindale was also purchased by the company. Rexford bought the asset for $40 million, or $116 per land square foot. The 7.9-acre low coverage site has 77,266 square feet of buildings and is leased to a single tenant through a sale-leaseback agreement. 

The vacancy rate in the 160 million square foot San Gabriel Valley submarket was 1.2% at the end of the third quarter, according to CBRE data.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.
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