Rexford Industrial Increases LA Portfolio with $106M Buy
Rexford states it intends to demise a vacant 98,218 square foot building into two units in order to increase value.
THOUSAND OAKS, CA—Rexford Industrial Realty Inc. has acquired the Conejo Spectrum Business Park in Thousand Oaks, CA for $106.3 million in cash or $200-a-square-foot in an off-market transaction.
The 531,378-square-foot industrial park was 72% leased at the time of sale to a range of credit tenants and consists of nine industrial buildings on 28.05 acres of land.
The newly constructed, Class A buildings are LEED certified and feature 28′-30′ clearance, ESFR fire sprinklers, private secured yards and modern office space.
Rexford states it intends to demise a vacant 98,218 square foot building into two units in order to increase value. According to CBRE, the vacancy rate in the 64 million square foot Ventura County submarket was 3.1% and the vacancy rate in the 174 million square foot San Fernando Valley submarket was 1.6% at the end of the fourth quarter 2018.
“This transaction presented the rare opportunity to acquire a newly constructed industrial park in a highly competitive submarket in which Class A industrial space is virtually unavailable,” states Howard Schwimmer and Michael Frankel, co-CEOs of Rexford Industrial. “Conejo Spectrum Business Park has attracted high quality tenants, including major ecommerce and consumer product companies, due to the substantial demand for last-mile logistics to service the adjacent population centers of the San Fernando Valley and Ventura County markets.”
Los Angeles-based Rexford, which owns 179 properties with approximately 22.0 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet, has been busy of late.
Last month, Rexford acquired two industrial properties totaling $27.6 million. The REIT acquired 12821 Knott St. in Garden Grove within the Orange County-West submarket, for $19.8 million from an affiliate of Brixton Capital. The 120,800 square foot single-tenant industrial building is located on 6.97 acres of land. Rexford intends to modernize and reposition the existing building and add 40,000 square feet of new 30′ clear warehouse space.
The firm also acquired 28510 Industry Drive a newly built 46,778-square-foot industrial building, located in Valencia within the LA – San Fernando Valley submarket, for $7.8 million.
In late December, Rexford reported the acquisition of an industrial property in the City of Industry for $19.5 million and the disposition of a three-building property in Gardena within the LA – South Bay submarket for $10.4 million.