Topaz Business Park in Simi Valley Bought for $46 Million

Rexford Industrial Realty has purchased Topaz Business Park, a six-unit industrial building in Simi Valley, for $46.4 million. 

The 242,101-square-foot asset, located at 2280 Ward Ave., is the largest ever sold in the submarket, according to Lee & Associates L.A. North/Ventura’s President Mike Tingus and principals Joe Jusko and Grant Fulkerson, who represented both Rexford Industrial and the seller, 2280 LLC, in the sale.  

The brokers also handled leasing for the property’s previous owner and user, Topaz Distribution, and helped the building reach 100 percent occupancy as of two months ago. 

Topaz Distribution purchased the asset a decade ago for $14 million. In 2015, the building went through a renovation and added 40,000 square feet of rentable space. The property reached full occupancy as the pandemic continued to drive unprecedented market growth in Simi Valley.

Tingus said that market conditions set the stage for a sale that was almost unimaginable prior to the pandemic. 

“The Ventura industrial market has experienced more growth since the pandemic than during the 13 years that preceded the first cases of COVID-19 in California,” Tingus said. “Even as the pandemic loosens its grip, there remains incredible demand that the marketplace can’t absorb. The result was a win-win for both the buyer, who expanded its footprint in the market, while the seller’s profit exceeded $32 million.”  

Rexford plans to hold the property as an investment and establish market rents. With few industrial investment opportunities and historically low vacancy rates, the stabilized building is a difficult-to-find entry point in the supply-strapped Ventura market. 

The purchase continues the narrative of Rexford Industrial’s interest in the Valley area. Last year, Rexford acquired an 18-building industrial portfolio in the Van Nuys Airport Industrial Center for $154.6 million. The firm also picked up a Sylmar industrial park with an eye toward redevelopment for $22 million.  

Rexford also owns Thousand Oaks’ 505,378-square-foot Conejo Spectrum Business Park, which it bought from originator Saeris Regis Group in 2019. 

Industrial product remains in high demand and low supply. Only 114,000 square feet of new inventory has been delivered in the Ventura County market during the first three quarters of the year. Asking rent in the Simi Valley submarket has gone up from 78 cents a square foot in the first quarter to 89 cents in the third quarter, according to Colliers International. 

Topaz Distribution continues to occupy roughly 51,000 square feet of space on the property. Other tenants include Tire Hub, Sooner Express, Frontline, Derma E and Lifetech Resources.