Rexford Industrial Buys Simi Valley Industrial Park for $46M
At 242,000 square feet and six buildings, the deal is the largest to close in the submarket’s history.
Rexford Industrial has acquired the Topaz Business Park, a six-building industrial park in Simi Valley, for $46.4 million from a private investor operating as 2280 LLC. At 242,101 square feet, the property is the largest industrial property to trade hands in the Simi Valley market.
Topaz Distribution previously owned Topaz Business Park. The company purchased the property in 2011 for $14 million, and in 2015, it added 40,000 square feet. The same year, the Ventura industrial submarket began to see unprecedented growth, with vacancy plummeting to 2.4% and the arrival of institutional capital. During the pandemic, the Ventura market continued to attract new demand, and Topaz, with the help of Lee & Associates, brought the property to 100% occupancy. It sold the property, making with $32 million in profit.
The Ventura market is well positioned for continued growth. This year, only 114,000 square feet of new supply has delivered into the market, promising a tight vacancy and rising rents. Rexford’s business plan hinges on this dynamic. The investor plans to hold the property for the long term and bring the current rents to market rate.
Rexford has been an active buyer this year. In August, for example, the firm acquired two industrial properties for $194.4 million. The properties were purchased in off-market transactions with cash on hand, 8210-8240 Haskell Ave. in Van Nuys and 3100 Lomita Blvd in Torrance. Together, the properties total 629,224 square feet. The latter was the larger of the two transactions at 575,976-square-foot, five-building and trading hands for $182 million. The light industrial and manufacturing property is 91% leased to three credit tenants. At the time, the deal brought Rexford Industrial’s year-to-date transaction activity to $779 million.
In July and August, the firm acquired three value-add industrial properties totaling $115.2 million. The three properties include a 5.8-acre redevelopment site, a 107,023-square-foot industrial building and a 22.3-acre industrial outdoor storage site. All three properties are located in infill Southern California markets and were purchased with cash on hand.
Lee & Associates LA North/Ventura’s President Mike Tingus and principals Joe Jusko and Grant Fulkerson represented both Rexford and the seller in the transaction.