The Van Nuys investment is comprised of 18 separate buildings totaling 426,466 square feet across 22.68 acres acquired for $140.6 million, or $330 per square foot, plus a pair of fully leased industrial outside storage land parcels totaling 4.14 acres that was purchased for $14.0 million.
The acquisition was a cash-on-hand deal in an off-market transaction.
“This investment demonstrates Rexford’s sharp-shooter advantage by leveraging our proprietary originations platform to acquire an 18-building portfolio of irreplaceable industrial properties through an off-market transaction in one of the nation’s lowest-supply, highest-demand submarkets," Rexford co-Chief Executives Howard Schwimmer and Michael Frankel said in a statement. “Located adjacent to the Van Nuys Airport in the L.A. – San Fernando Valley submarket, Van Nuys Airport Industrial Center provides exceptional last mile and e-commerce functionality servicing the San Fernando Valley and West Los Angeles markets, one of the largest concentrations of population and consumption in the nation. As we look forward, we remain very pleased with the opportunities before us to drive accretive internal and external growth designed to enhance shareholder value.”
What was attractive to Rexford about these industrial properties is that they offer high-demand spaces ranging up to 42,000 square feet with premium functionality including dock-high loading, modern clear heights and secured truck storage yards. The sites are ideally positioned to serve logistics tenants.
At the time of the portfolio purchase, the properties were 99 percent leased.