Add Another $92M to Rexford’s Running Industrial Tally
As expected, Rexford Industrial Realty has closed another big acquisition in Southern California, the hottest warehousing market in the nation.
The Los Angeles-based REIT paid $91.5 million for two Class A industrial buildings with a combined 182,782 square feet in the city of Commerce, Calif., one mile down the road from two parcels Rexford recently bought for $40.5 million.
JLL represented the buyer and announced the deal.
The fully leased buildings at 6027 and 6000-6052 Bandini Boulevard sold for approximately $500 per square foot. Property records show both sites were owned by an entity tied to Miami-based Accendo Capital Group.
Rexford is in nonstop buying mode. In its most recent earnings call, executives said the firm acquired $1.6 billion in Southern California industrial assets in the first half of the year, with more than $500 million of additional investments under contract or accepted offer.
Meanwhile, asking rents in L.A. County rose 16 percent in the second quarter, according to JLL’s most recent market report. A new high watermark in rents closed at $2.16 per square foot for a newly constructed facility in Commerce.
“Despite macroeconomic headwinds, the health of the Southern California industrial market remains strong, with record low vacancy rates, consistent renewals and the continued upward trajectory of asking rates,” said JLL’s Craig Solomon, who represented Rexford on the deal with Chad Solomon and Brianna Demus.
Commerce is a small 6.5-square-mile municipality to the southeast of Downtown L.A., with fewer than 13,000 residents and a sea of warehouse properties. Earlier this year, Penwood Real Estate paid $69.8 million for a 230,000-square-foot industrial property in Commerce, and aerospace distribution company FDH Aero took a 114,898-square-foot lease to take up the entire Commerce Logistics Center owned by Blackstone’s Link Logistics.
Gregory Cornfield can be reached at email@example.com.