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Tuesday, Nov 28, 2023

Rexford Buys 2 Industrial Properties

Panorama City, Valencia deals part of $218M package.

Rexford Industrial Realty, Inc. has acquired six properties for an aggregate purchase price of $218.4 million, which includes two properties in the North Los Angeles region.

The purchases were funded using a combination of cash on hand and the company’s line of credit.

“Rexford Industrial continues to leverage its differentiated sourcing advantage and value-add expertise within infill Southern California, the nation’s most desirable industrial market with occupancy levels at essentially full capacity and an incurable supply-demand imbalance,” Howard Schwimmer and Michael Frankel, co-chief executives of the company, said in a statement. 

“Tenant demand for Rexford Industrial’s high quality, irreplaceable portfolio continues at historically high levels as demonstrated by the nearly 1 million square feet of leases executed during April and May at leasing spreads of 86% and 63% on a GAAP and cash basis, respectively.” 

Among the acquisitions is 14350 Arminta St. in Panorama City, which Rexford picked up for $8.4 million, or $463 per square foot. The 18,147-square-foot building sits on an acre and is adjacent to three other Rexford Industrial-owned assets. 

The property is leased to a single tenant at rent estimated to be approximately 30% below current market rates. 

Upon lease expiration, the company plans to renew the existing tenant or re-lease at market rates following a value-add repositioning plan. 

Rexford also acquired 29125 Avenue Paine in Valencia through an off-market transaction for $45 million, or $256 per square foot. 

The 175,897-square-foot Class A building sits on nine acres and is leased to a single tenant at a rent estimated to be approximately 30% below current market rates. 

Rexford plans to renew with the existing tenant or re-lease at market rates upon lease expiration. 

Other properties acquired by Rexford are located in Redondo Beach, San Pedro, Torrance and Tustin.  

Rexford also recently bought another pair of Panorama City properties. In June, the company paid $90.2 million, or $451 per square foot, for a 200,000-square-foot warehouse.

Michael Aushenker
Michael Aushenker
A graduate of Cornell University, Michael covers commercial real estate for the San Fernando Valley Business Journal. Prior to the Business Journal, Michael covered the community and entertainment beats as a staff writer for various newspapers, including the Jewish Journal of Greater Los Angeles, The Palisadian-Post, The Argonaut and Acorn Newspapers. He has also freelanced for the Santa Barbara Independent, VC Reporter, Malibu Times and Los Feliz Ledger.

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