SAN DIEGO—Rexford Industrial Realty Inc., an industrial REIT focused on Southern California infill markets, has acquired a 13-building industrial portfolio in San Diego, California, for $32.3 million, or approximately $172 per square foot.
The acquisition was funded utilizing the company's credit facility. This acquisition brings Rexford Industrial's 2014 acquisition volume to 3,738,000 square feet, comprised of 36 industrial properties located in infill Southern California for an aggregate cost approaching $400 million.
“Our acquisition of the Kearny Mesa Business Park further validates Rexford Industrial's ability to utilize its proprietary sourcing capabilities to source off-market acquisitions in supply-constrained submarkets such as Kearny Mesa,” the company stated in a press release. “We purchased this high-quality, multi-tenant portfolio from a private seller motivated to complete a transaction by year end. We plan to harvest favorable cash flow in the immediate term and to roll below-market rents to market upon renewal or re-leasing in the near to longer term.”
The property is located at 6970-7170 & 7310-7374 Convoy Court, in Kearny Mesa, within the Central San Diego submarket. It consists of 13 multi-tenant industrial buildings, ranging from 8,400 to 33,000 square feet, with a total of 187,763 square feet on 12.05 acres. The complex is currently 98% occupied and is comprised of 57-units of varying sizes, creating an advantageous mix of tenant spaces. The project's high quality, diverse tenant base serves regional distribution, warehousing and manufacturing. Rexford Industrial plans to implement cosmetic upgrades to increase the property's marketability and to drive occupancy and facilitate roll-up of below-market rents to market rates on renewal and re-leasing.
The park is located in the Central San Diego submarket, with favorable access to the 52, 163, I-805, I-8 and I-15 freeways. According to CBRE, the vacancy rate in the 81 million square foot Central San Diego submarket stood at 6.8% at the end of the third quarter of 2014.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
