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6/09/21
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Rexford Industrial Realty purchased five industrial properties comprising 79.3k sf of improvements on 18.8 acres of land for combined price of $68.1 mil. The company also sold one industrial property for $8.2 mil. The acquisitions were funded using a combination of cash-on-hand and 1031 disposition proceeds.
So far, during the second quarter 2021, Rexford has acquired the following properties:
• 12118 Bloomfield Ave, located in Santa Fe Springs, within the Los Angeles – Mid-Counties submarket for $16.7 mil or $74 per land square foot. The property consists of a 5.2-acre, low coverage land site leased back short-term to the seller. The company plans to remove existing improvements and develop a two-tenant, 32-foot clear, modern logistics building expected to generate an initial stabilized unlevered yield on total investment of 5.4%. According to CBRE, the vacancy rate in the 112 msf Los Angeles – Mid-Counties submarket was 0.7% at the end of the first quarter 2021.
• 256 Alondra Blvd, located in Carson within the Los Angeles – South Bay submarket for $11.3 mil or $93 per land square foot. The property comprises a 2.8-acre industrial outdoor storage yard leased long-term to a single tenant. The site provides favorable freeway access in close proximity to LAX and the Los Angeles-Long-Beach port complex. The investment generates a 5.2% initial unlevered yield, growing over time with 3% contractual annual rent increases.
• 19007 S. Reyes Ave located in Rancho Dominguez within the Los Angeles – South Bay submarket for $16.4 mil or $83 per land square foot. The 4.5-acre industrial site will undergo value-add repositioning by clearing the site of vintage, dysfunctional improvements and conversion to a paved container storage facility. Pre-leased immediately post-closing, the projected initial stabilized unlevered yield on total investment is approximately 6.1%.
• 19431 Santa Fe Ave located in Rancho Dominguez within the Los Angeles – South Bay submarket for $10.5 mil or $82 per land square foot. The 100% leased, low coverage site comprises 14.8k sf of improvements on 3.0 acres. The initial unlevered yield on total investment is 4.5%, which is expected to grow to approximately 5.8% once the below-market in-place lease rolls.256 Alondra Blvd, 19007 S. Reyes Ave and 19431 Santa Fe Ave are located within the 218 msf Los Angeles – South Bay submarket which, according to CBRE, had a vacancy rate of 0.8% at the end of the first quarter 2021.
• 4621 Guasti Rd located in Ontario within the Inland Empire – West submarket for $13.3 mil or $207 per square foot. The single-tenant industrial building comprises 64.5k sf on 3.4 acres. The property was pre-leased during escrow, generating an initial stabilized unlevered yield on total investment of 5.3%, growing thereafter with 4% contractual annual rental rate increases. According to CBRE, the vacancy rate in the 316 msf Inland Empire – West submarket was 1.2% at the end of the first quarter 2021.
The company sold during May:
• 11541 Tuxford St located in Sun Valley within the Los Angeles – Greater San Fernando Valley submarket for $8.2 mil or $275 per square foot, after receiving an unsolicited offer approximately 10 months after acquiring the property for $168 per square foot. The 29.7k sf building is located on 1.3 acres. Proceeds from the sale were reinvested into 4621 Guasti Rd, located in Ontario.
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