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6/23/20
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Rexford Industrial Realty Inc has boosted its industrial portfolio with the recent acquisitions of two SoCal assets in deals totaling $14.7 mil. The firm’s newest properties are located in Yorba Linda and San Diego. The acquisitions were funded using cash on hand as well as the assumption of existing debt on one of the properties.
In Yorba Linda, Rexford acquired 22895 Eastpark Drive, located within the Orange County – North Submarket, for $6.8 mil, or $196 per square foot. The low coverage single-tenant property contains 35k sf on 2.35 acres of land and is fully leased on a long-term basis. According to CBRE, the vacancy rate in the 115 msf Orange County – North submarket was 1.0% at the end of the first quarter 2020.
Rexford also purchased 8745 and 8775 Production Avenue, located in San Diego within the San Diego – Central submarket, for $7.9 mil, or $167 per square foot. The property comprises two industrial buildings containing a total of 46.8k sf on 2.85 acres of land. The property is 65% leased at rents estimated to be 15% below market rates.
The firm plans to undertake value-add repositioning to enable releasing at higher market rates. According to CBRE, the vacancy rate in the 80 msf San Diego – Central submarket was 4.5% at the end of the first quarter 2020.
Commenting on these latest purchases, the company stated, "Eastpark Drive provides immediate cash flow through a long-term in-place lease. Production Avenue, an underutilized two-building property leased at below-market rents, provides value-add opportunity to drive additional cash flow and value growth. With nearly $270 mil of acquisitions completed year-to-date, an active investment pipeline and a low-leverage, well-capitalized balance sheet, we believe the company is favorably positioned to continue to capitalize upon internal and external growth opportunities focused on creating long-term value for shareholders."
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