Rexford Purchases 10 Industrial Properties

Rexford Industrial Realty Inc. closed out the fourth quarter with the acquisition of 10 industrial properties — including a Van Nuys warehouse on Haskell Avenue — for an aggregate purchase price of $336 million 

The transactions were funded using a combination of cash on hand and proceeds from forward equity settlements and were part of $2.4 billion worth of acquisitions that the Brentwood-based company made last year.  

“Our $2.4 billion of acquisitions completed in 2022 demonstrate Rexford Industrial’s ability to drive substantial, above-market value creation and return on investment, while highlighting our unique position as the nation’s largest pure-play U.S.-focused industrial REIT,” Howard Schwimmer and Michael Frankel, co-chief executive officers, said in a statement.  

In the San Fernando Valley, Rexford purchased 7817 Haskell Ave. in Van Nuys for $11.1 million, or $128 per land square foot. The 2-acre industrial outdoor storage site is 100% leased to a single tenant. 

According to CBRE Group Inc., the vacancy rate in the 177 million square foot San Fernando Valley submarket was 0.5% at the end of the third quarter.

The other purchases were made throughout Los Angeles County.

In Rancho Dominguez, Rexford acquired 3131 E. Harcourt St. and 18031 S. Susana Rd. for $27.5 million, or $208 per land square foot. The 3-acre site is located immediately adjacent to a 2.5-acre site the company had acquired in August. 

Once current leases expire, Rexford plans to redevelop the combined sites into a logistics facility containing a 34,000-square-foot building and an oversized container storage yard. 

The vacancy rate in the 221-million-square-foot L.A. – South Bay submarket was 1.2% at the end of the third quarter 2022, according to data from CBRE.

Also in the South Bay, Rexford acquired a property at 14400 S. Figueroa St in Gardena for $49 million, or $234 per land square foot. The 4.8-acre site is located adjacent to a 1.0-acre site Rexford acquired in July. 

The company intends to reposition the combined site into a logistics facility containing a 57,000-square-foot cross dock building and oversized container storage yard. 

Rexford also purchased a five-property portfolio in the South Bay and Inland Empire submarkets for $198.1 million, or $382 per square foot. The properties are located at 2130-2140 E. Del Amo Blvd. and 20455 S. Reeves Ave. in Carson; 19145 Gramercy Place in Torrance; and 14874 Jurupa Ave. and 10600 Mulberry Ave. in Fontana. In aggregate, the portfolio totals 518,931 square feet on 24.6 acres of land and is 100% leased to six tenants. 

According to CBRE, the vacancy rate in the 329 million square foot Inland Empire – West submarket was 0.4% as of third quarter 2022.

Rexford acquired a property at 755 Trademark Circle in Corona for $10.5 million, or $305 per square foot. The 34,427-square-foot building situated on 1.6 acres is leased to a single tenant through a long-term sale-leaseback. 

A property at 4500 Azusa Canyon in Irwindale was also purchased by the company. Rexford bought the asset for $40 million, or $116 per land square foot. The 7.9-acre low coverage site has 77,266 square feet of buildings and is leased to a single tenant through a sale-leaseback agreement. 

The vacancy rate in the 160 million square foot San Gabriel Valley submarket was 1.2% at the end of the third quarter, according to CBRE data.