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9/18/26
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An affiliate of EQT Real Estate acquired a 5.2 msf SoCal industrial portfolio from Rexford Industrial Realty in a $1.2 bil ($231/sf) transaction.
The transaction comprises 22 industrial properties containing 32 buildings throughout Los Angeles, Orange County, the San Gabriel Valley, South Bay and Inland Empire West. More than half of the square footage is in infill locations within roughly 25 miles of the Los Angeles/Long Beach port complex.
The portfolio is 96% leased to 36 tenants, with tenants representing a variety of industries. The weighted-average remaining lease term is 2.7 years. The buildings have an average size of 237k sf.
At closing, the portfolio had in-place rents 28% above current market rates. The portfolio's estimated 2027 cash NOI yield is approximately 5.5% and reflects the anticipated roll-down of above-market in-place rents and expected tenant moveouts.
CBRE National Partners West served as the company's advisor in connection with the portfolio transaction.
The portfolio transaction is part of Rexford Industrial's previously announced portfolio realignment, a $2.0 bil disposition initiative of non-core assets that enhances the company's portfolio quality, cash flow durability and balance sheet strength.
Third quarter to date, the company has deployed a portion of disposition proceeds to repay $485 mil of debt and repurchase $205 mil of common stock. Year to date, the Company has repaid $492 mil of debt and repurchased $505 mil of common stock. The remaining disposition proceeds are expected to be deployed toward 2027 debt maturities, opportunistic repurchases of common stock under the company's previously announced $1.0 bil share repurchase program and internal repositioning and development projects that offer attractive risk-adjusted returns. The company's estimated year-end 2026 net debt to adjusted EBITDAre is 3.5x.
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