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6/14/18
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Rexford Industrial Realty Inc has closed on the purchase of two single-tenant industrial properties in separate transactions worth $42 mil. The acquisitions were funded through a combination of cash on hand and draws on the company's line of credit.
The company acquired 1420 N. McKinley Ave in Compton, within the LA – South Bay submarket, through an off-market transaction for $30 mil, or $219 per square foot. The newly constructed, high-image property contains 136.7k sf on 6.70 acres of land and was recently leased to a single tenant providing logistics and freight-forwarding services.
The building features 27 dock-high loading positions, 165' all concrete secured yard, 32-foot clear height, ESFR fire sprinklers and is well-located off a major thoroughfare in close proximity to the ports of Los Angeles and Long Beach as well as Los Angeles Airport. According to CBRE, the vacancy rate in the 223 msf LA – South Bay submarket was 0.8% at the end of the first quarter 2018.
Rexford also acquired 4416 Azusa Canyon Rd, located in Irwindale within the LA – San Gabriel Valley submarket, through an off-market transaction for $12 mil, or $170 per square foot. The site contains 70.5k sf on 5.89 acres, including excess land.
The building is currently 100% leased on a short-term basis with options to redevelop the existing structure or entitle for new development upon lease expiration. According to CBRE, the vacancy rate in the 152 msf LA – San Gabriel Valley submarket was 1.7% at the end of the first quarter 2018.
Commenting on these latest acquisitions, Michael Frankel, Co-Chief Executive Officer of the Company, noted "McKinley is a brand-new, state of the art, Class A industrial asset located in an extremely low-vacancy port-adjacent submarket. Azusa Canyon is a short-term sale / leaseback with value-add potential upon lease expiration. With more than $309 mil of acquisitions completed year-to-date, we remain focused on executing both our internal and external growth strategies to drive cash flow and to create long term value for our shareholders."
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