LOS ANGELES—Rexford Industrial has acquired two Southern California industrial properties for a total of $24.9 million. The two properties have a total of 218,768 square feet, and were purchased using Rexford’s credit facility as well as $4.35 million in proceeds from the sale of another Southern California industrial property.
“These purchases are indicative of our continued portfolio growth through quality, accretive cash flowing assets at favorable valuations,” Howard Schwimmer, Rexford Industrial Co-CEO, tells GlobeSt.com, adding that these are primary target infill markets for the REIT, which has already acquired $54 million in industrial properties this year.
Located at 1700 Saturn Way in Seal Beach, the larger of the two properties measures 170,865 square feet and cost Rexford $21.1 million. It is located in a strong industrial submarket with close proximity to the ports and a low 2.3% vacancy rate. The property is 100% leased to a long-term tenant.
The second and smaller property is located at 24105 Frampton Ave. in Torrance, CA, and measures 47,903 square feet. Rexford purchased the property for $3.93 million, or $84 per foot. Like the other property, it is located in close proximity to the ports and in an area with a low, 2.2% vacancy rate. It also is 100% leased to a long-term tenant.
Properties in this size range have seen an uptick in activity. GlobeSt.com recently reported that two Santa Fe Springs industrial properties close to 50,000 square feet traded hands for $14 million. At the time, Luke McDaniel, the JLL broker who worked on the deal, told GlobeSt.com, “I think the smaller, local companies took a little more time to catch on and get out of the recessionary mode. Now, the sweet spot really is anywhere from 10,000 to 100,000 square feet for owner-user sales.”