Rexford Buys Multi-Tenant Industrial in Torrance for $75M

Rexford Industrial has acquired a multi-tenant industrial building in Torrance for $75 million from Z/A Torrance Associates. Located at 4240 W. 190th Street in the South Bay, the 307,487-square-foot property is fully occupied by two tenants.

Rexford purchased the property as a redevelopment play to capitalize on the strong South Bay location, which is proximate to the ports. Until the property is available for redevelopment—there are nearly 4 years remaining on the lease term—it offers strong cash flow. Newmark executive managing director Bret Hardy, called the investment a “remarkable” opportunity. Hardy represented the seller in the transaction along with executive managing directors Jim Linn, Andrew Briner and Scott Schumacher and co-head of U.S. capital markets Kevin Shannon.

Rexford has been aggressively buying industrial product throughout Southern California. While this is one of the firm’s early 2022 transactions, it closed more than $1.6 billion in deals last year. In December alone, the company closed $141 million in deals, purchasing five industrial assets, all located in prime Southern California markets and purchased in off-market transactions. The properties included 20481 Crescent Bay Drive, a 88,355-square-foot, single-tenant industrial asset in Lake Forest, purchased for $19.5 million; 2280 Ward Avenue, a 242,100-square-foot, modern class-A six-tenant building in Simi Valley, purchased for $46.4 million; 334 El Encanto Road, 64,368 square foot, single tenant building is situated on 3.8 acres of land in the City of Industry, purchased for $10.7 million; 17031-17037 Green Drive, a 51,000-square-foot property; and 13512 Marlay Avenue 199,363 square foot, modern, single tenant industrial warehouse on 10.1 acres of land in Fontana purchased for $51.0 million.

The Los Angeles industrial market, where its most recent purchase is located, is one of the top markets in the country with a vacancy rate of 1.1%, according to research from Newmark. During the pandemic, the market had 13.7 million square feet, the fourth-highest year on record. By October last year, deal volume already surpassed activity in 2020, with $51.2 billion in deals closed through October. The average sale price of industrial assets is now at $110 per square foot, a 25% increase over 2020 figures, according to research from CommercialEdge. That average price has also increased every quarter so far this year, from $96 psf in Q1 to $108 in Q2 and $120 in Q3.