|
|
12/22/20
|
Rexford Industrial Realty Inc purchased a six-building industrial portfolio for $93.8 mil and an industrial outdoor storage yard for $16.8 mil. The acquisitions were funded using cash on hand.
Rexford acquired the six-building industrial portfolio in Vernon, within the LA – Central submarket, through an off-market transaction that worked out to $202 per square foot. The portfolio comprises single- and multi-tenant buildings containing 464.4k sf on 20.93 acres of land, featuring 20'-30' clear heights with extensive dock-high loading.
The properties are 100% leased at rents estimated to be approximately 28% below current market rates, and are ideally positioned to serve last-mile distribution and logistics needs in the center of Greater Los Angeles, the nation's largest metropolitan statistical area (MSA). The initial unlevered yield on total investment is approximately 4.5% and is expected to grow as in-place rents are increased to higher market rates.
The portfolio properties are located in Vernon at 1921-1931 E 27th Street (35k sf); 2011-2025 E 27th Street (40.4k sf; 2031-2099 E 27th Street (98.4k sf); 2034-2040 E 27th Street (126.6k sf); 2750 S Alameda Street (63.3k sf); and 2800-2840 S Alameda Street (100.7k sf). According to CBRE, the vacancy rate in the 290 msf LA – Central submarket was 2.6% at the end of the third quarter 2020.
The company also acquired 12211 Greenstone Ave, located in Santa Fe Springs within the LA – Mid-Counties submarket, for $16.8 mil, or $77 per land square foot. The five-acre industrial outdoor storage yard was developed in 2019 and is currently leased to a high quality, national tenant at a rent estimated to be approximately 23% below current market rates.
The initial unlevered yield on investment is approximately 4%. 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.
Year-to-date, Rexford has completed over $1.1 bil of acquisitions, including $771 mil in the fourth quarter alone.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
