LOS ANGELES—Rexford Industrial has purchased Avenue 32, a 100,500-square-foot industrial property in the East San Fernando Valley for $11 million. The purchase brings the industrial REIT‘s year-to-date purchases to $196 million.
The property is located in the East San Fernando Valley between Glendale and Burbank in Los Angeles County’s second largest industrial market. The submarket, according to CBRE‘s Q2 reports, has an industrial vacancy rate of 1.3%. This specific property is within close proximity to the I-5, I-110, SR-2, SR-134 and SR-101 freeways, making distribution convenient.
Rexford purchased the property with the company’s line of credit. The property is fully leased to two tenants. It is a class-A building with 26-foot clear heights and 200 onsite parking spaces. Rexford plans to upgrade the building as well, installing high-pile fire sprinkler systems, renovating the offices and upgrading the loading systems. With this capital investment and prime location, the REIT expects to garner “market-leading” rents when the leases roll. Rexford did not respond to a request for a comment.
Rexford has been working to expand its portfolio this year. The REIT recently purchased an 817,166-square-foot industrial portfolio with nine buildings and seven properties located throughout Southern California. Rexford acquired the portfolio for $89 million from Westcore.