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6/30/21
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Rexford Industrial purchased Box Yard, a four-building creative industrial business park totaling 261.5k sf in Los Angeles’ Arts District, for $94 mil ($360/sf), as mentioned in a separate article posted yesterday covering multiple recent transactions by Rexford.
The property, located at 2425, 2445, 2460 and 2535 E. 12th St, was 94% leased at the time of sale, catering to a variety of tenant uses including e-commerce, tech, entertainment/studio, fashion, arts and creative uses. The project recently underwent significant interior and exterior renovations, designed by Gensler, including upgraded office finishes, LED lighting and warehouse air circulation fans, exterior paint, new signage, landscaping and improved site security. Five new leases have been signed at the property in the last six months.
Property features include 24-foot clear heights, dock- and grade-level loading for each unit and a fully gated and secured site. Ideally situated in a central location, Box Yard benefits from its proximity to major interstate/highway and transportation networks, airports and ports.
Newmark’s Executive Managing Directors Andrew Briner, Bret Hardy and Jim Linn, Co-Head of U.S. Capital Markets Kevin Shannon and Senior Managing Directors Scott Schumacher and Laura Stumm represented the seller, Bridge Industrial.
“Investors continue to drive exceptional demand for highly functional industrial assets in gateway markets,” said Briner. “Furthermore, the opportunity for investors to achieve outsized risk adjusted returns through a targeted lease up strategy at Box Yard made this acquisition opportunity unique resulting in market leading pricing for our seller.”
Linn added, “The scale, location and Class A refurbishment of this project by Bridge Industrial attracted investors across the U.S. Rexford Industrial will surely benefit by outsized future rental growth from tenants seeking functional space in a park-like environment that is proximate to Downtown LA and the coveted Arts and Fashion Districts.”
Los Angeles remains one of the most resilient industrial markets in the country, servicing a consumer population of nearly 18 million throughout the five-county greater Los Angeles metropolitan area. The Central Los Angeles industrial market poses strong market fundamentals with 76 consecutive quarters of sub-3% vacancy and a current vacancy rate of 1.5%, according to Newmark Research.
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