Rexford Acquires 121,000-SF Portfolio

SANTA ANA, CA-Rexford Industrial of Los Angeles has acquired a five-building industrial portfolio of nearly 121,000 sf for $13.2 million. Three of the five buildings in the industrial portfolio acquired by the L.A. firm are situated in Orange County, the other two in the Inland Empire.

This latest portfolio acquisition represents "another big achievement in Rexford's aggressive acquisitions strategy for 2007," according to Howard Schwimmer, Rexford's co-founder and managing partner. Schwimmer describes the newly acquired properties as "highly sought-after, high quality infill assets."

Rexford's growth strategy involves acquiring such properties throughout Southern California. Schwimmer says that the company sees "great upside potential, particularly in the Orange County assets," to upgrade the properties to institutional standards and rent the value-enhanced space.

The three Orange County properties include a 38,570-sf multi-tenant building at 3720-3750 W. Warner Ave. in Santa Ana, a 27,200-sf multi-tenant building at 200-220 S. Grand Ave. in Santa Ana and a 25,162-sf single-tenant building at 1255 Knollwood Circle in Anaheim. Rexford plans to upgrade and renovate the 3720-3750 W. Warner Ave. building, which is 74% occupied, to achieve higher rents while filling the available space.

At the 200-220 S. Grand Ave. building, which is 100% occupied, Rexford plans to reposition the project for more showroom-oriented uses. The project already offers industrial showroom space, and Rexford believes it can capitalize on the property's central location along a busy thoroughfare.

The1255 Knollwood Circle building is 100% occupied IPC Cal Flex Inc., which Rexford describes as "a perfectly suited tenant for the space." IPC is a manufacturer of electronic circuit products used in the aerospace, military, communications, automotive, medical, computer and data peripherals industries.

The two Inland Empire properties are a 21,657-sf multi-tenant building at 77-700 Enfield Lane in Palm Desert and an 8,160-sf two-tenant building at 42363 Avenida Alvarado in Temecula. The Palm Desert property is 63% occupied, and Rexford plans to divide the vacant space while raising rents to meet demand from smaller tenants.

At the Temecula building, which is 50% occupied, Rexford plans to lease the vacant space and move rents upward to current market rates. In its acquisition of the five properties, both Rexford and the seller, the Clifford L. Shinn Trust, were represented by Jeff Demorest of Daum Commercial Real Estate Services. The L.A.-based firm bought the properties through its Rexford's Industrial Fund IV, the fourth in a series of value-added industrial real estate funds managed by the company.