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4/01/21
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In the latest activity by Rexford Industrial Realty, the company acquired five industrial properties representing 382.3k sf of improvements for an aggregate purchase price of $68.8 mil. The company also sold one industrial property for $1.5 mil. The acquisitions were funded using a combination of cash-on-hand and 1031 proceeds from the disposition.
Rexford acquired the following properties during February and March:
* 9920-10020 Pioneer Blvd, located in Santa Fe Springs, within the Los Angeles – Mid-Counties submarket for $23.3 mil or $147 per square foot. The seven buildings comprise 157.7k sf on 8.3 acres of land. The company plans to reposition the mostly vacant buildings with capital improvements to modernize and improve functionality. The expected stabilized yield on total investment is 5.2%. According to CBRE, the vacancy rate in the 112 msf Los Angeles – Mid-Counties submarket was 1.4% at the end of the fourth quarter 2020.
*2253 Garfield Ave and 6655 26th St, City of Commerce within the Central Los Angeles submarket and 560 N. Main St, Orange within the North Orange County submarket, were collectively acquired in an off-market transaction for $13 mil, or $144 per square foot. The three 100% leased properties comprise 90.1k sf on 4.8 acres with favorable access to dense population centers. The initial unlevered yield is approximately 3.6%. As value-add enhancements are completed and below market leases roll, the yield on total investment is expected to stabilize at approximately 6.9%. According to CBRE, the vacancy rate in the 165 msf Central Los Angeles submarket was 1.3% and 1.1% in the 115 msf North Orange County submarket, at the end of the fourth quarter 2020.
*4225 Etiwanda Ave located in Jurupa Valley within the Inland Empire – West submarket for $32.3 mil or $240 per square foot. The 100% leased, three-tenant industrial building comprised 134.5k sf on 6.6 acres and features 30-foot clear height with a 145-foot deep truck court. The initial unlevered yield on total investment is 3.5% and is expected to stabilize at approximately 4.7% after leases roll to higher market rents. According to CBRE, the vacancy rate in the 314 msf Inland Empire – West submarket was 1.9% at the end of the fourth quarter 2020.
The company sold in March:
*6760 Central Ave located in Riverside within the Inland Empire – East submarket for $1.5 mil or $150 per square foot. The 9.9k sf building is located on 0.6 acres in a non-core submarket. Proceeds from the sale were reinvested into 560 N. Main Street, located in Orange.
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