Rexford Adds Single-Tenant Property in Tight SoCal Submarket
The 108,500-square-foot building on 4.67 acres is currently 89% occupied by a single tenant on a short-term lease at a below-market rental rate.
LOS ANGELES—Rexford Industrial continues to add to its portfolio in Southern California with the purchase of 16121 Carmenita Road in Cerritos within the tight LA – Mid-Counties submarket for $13.3 million, or $123-per-square-foot.
The locally-based firm acquired the property in an all-cash transaction. The 108,500-square-foot building on 4.67 acres is currently 89% occupied by a single tenant on a short-term lease at a below-market rental rate.
The property is divisible, featuring two-street access and two separate entries and office components, 20′ clear height and secured yards. Upon lease rollover, the company says it intends to demise the structure into two units and implement cosmetic and functional improvements to increase cash flow. According to CBRE, the vacancy rate in the 112 million square foot LA – Mid-Counties submarket was 1.6% at the end of the second quarter 2018.
Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford Industrial states, “Carmenita Road is an underutilized, well-located property in a highly supply-constrained submarket with favorable value creation potential. We remain focused on executing our value-driven business model investing in and adding value to industrial property throughout infill Southern California. We believe our pipeline of potential investment opportunities will enable us to continue to deliver exceptional internal and external growth and to create long-term value for our shareholders.”
Rexford, which owns 167 properties with approximately 20.4 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet, announced the acquisition of two industrial properties for $20.3 million in July. The acquisitions were also funded using available cash on hand.
In April, Rexford Industrial purchased a 49,585-square-foot value-add property in the Conejo Valley northwest of Los Angeles for $133-per-square-foot, one of the highest per-square-foot prices in the market.