Rexford Industrial Spends $205M on SoCal Warehouses
The firm purchased eight industrial properties in Southern California markets with cash on hand.
Rexford Industrial has acquired eight industrial properties in infill Southern California markets for $205 million. The purchases were made with cash on hand in February and March. Rexford will execute a value-add strategy on the properties, the firm’s typical investment strategy.
Rexford acquired 13700-13738 Slover Avenue in Fontana for $13.2 million. The company plans to redevelop the 4.2-acre site, with plans to develop a 95,000-square-foot single-tenant warehouse building with high-visibility and frontage along Interstate-10 freeway. The deal will generate a 6.6% unlevered stabilized cash yield on total investment.
21415-21605 Plummer Street in Chatsworth was acquired for $42 million in an off-market deal. Like the above acquisition, this is a redevelopment play. Rexford will demolish the existing 231,769 square feet of flex/office space and develop two class-A, 32-foot-clear warehouse buildings totaling 182,000 square feet on the 9.1 acre industrial-zoned site.
1501-1545 Rio Vista Avenue in Los Angeles traded hands for $28 million. The two class-A industrial buildings total 54,777 square feet on 2.1 acres, and they are leased approximately 50% below market, providing upside opportunity for Rexford to make upgrades and drive rents upon the lease expiration.
The largest single-property purchased in the round of acquisitions is an industrial complex in Ventura, which Rexford acquired for $57 million. The complex has three industrial buildings totaling 285,750 square feet on 15.0 acres. Upon improvements, the investment is expected to generate a 4.3% unlevered stabilized cash yield, growing over time by 3% contractual annual rent increases.
Finally, Rexford acquired a four-property portfolio for $65 million. The properties are located throughout the Los Angeles market. The properties total 150,700 square feet on 8.8 acres, and all are fully leased with long-term, absolute net leases. The investment will generate an initial 3.6% unlevered stabilized cash yield.
Rexford is an active investor in the Southern California market. Last year, the firm acquired more than $1.6 billion in industrial properties. This year, it closed an earlier round of industrial purchased for $170 million.