|
10/21/20
|
Rexford Industrial Realty Inc purchased two SoCal industrial properties for $27.6 mil, and has sold three other assets for $44.2 mil. The acquisitions were funded using cash on hand.
On the buy side, Rexford acquired 12133 Greenstone Ave in Santa Fe Springs within the LA – Mid Counties submarket, for $5.5 mil, or $26 per land square foot, through an off-market transaction in July. The 100% leased, single-tenant container storage facility contains a 12.6k sf truck terminal building on 4.8 acres with excess land serving highly sought-after truck parking.
Following the near-term expiration of the current lease, the company intends to reposition the property to provide greater functionality and increase rents to higher market rates. According to CBRE, the vacancy rate in the 112 msf LA – Mid Counties submarket was 2.2% at the end of the third quarter 2020.
Rexford also acquired 12772-12746 San Fernando Rd, located in Sylmar within the LA – San Fernando Valley submarket, for $22.1 mil, or $78 per land square foot. The property is 56% leased and comprises a 6.48-acre development site currently containing two legacy industrial buildings totaling 140.8k sf.
Following a short-term lease period, existing improvements will be removed and the site will be redeveloped with a new 145k sf, single-tenant Class A industrial building providing modern functionality that is expected to command premium rents within a submarket otherwise lacking similar quality available product. According to CBRE, the vacancy rate in the 175 msf LA – San Fernando Valley submarket was 2.7% at the end of the third quarter 2020.
During the third quarter, Rexford sold a vacant, single-tenant building at 3927 Oceanic Dr in Oceanside within the San Diego – North submarket for $10.3 mil or $188 per square foot. The company also sold a multi-tenant building located at 121 West 33rd St in National City in the San Diego – South submarket for $13.5 mil or $176 per square foot. Finally, the Company sold a two-tenant building at 2700-2722 South Fairview in Santa Ana within the Orange County – Airport submarket for $20.4 mil or $175 per square foot.
The firm expects to recycle the proceeds from the three dispositions utilizing tax deferred 1031 exchanges to fund future acquisition activity.
|
|
Return to the Archive page
|
|
|
|
|