Rexford Industrial Closes $210M Acquisition in LA
The REIT’s year-to-date investment hits $1.1B
By Greg Cornfield July 24, 2023 5:10 pm
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Amid its slowdown in acquisitions, real estate investment trust Rexford Industrial Realty has closed a big nine-figure deal in Los Angeles County to bring its year-to-date investments to over $1 billion.
The L.A.-based firm acquired the fully leased, 595,304-square-foot building on 22.4 acres at 9400 Santa Fe Springs Road in Santa Fe Springs for $210 million, or $353 per square foot. Rexford announced the deal Monday after mentioning the “impending” deal during its second-quarter earnings call earlier this month.
“We continue to take a highly selective approach to capital allocation, demonstrated by the quality of our investments to date and our acquisition pipeline comprising $50 million of additional acquisitions under contract or accepted offer,” stated co-CEOs Howard Schwimmer and Michael Frankel in a joint statement. “In addition to the company’s favorable external growth profile, we continue to capitalize upon opportunities to drive substantial internal cash flow growth through our 9 million square feet of value-add repositioning and redevelopment projects embedded within our portfolio and through the conversion of our substantial mark-to-market for in-place rents as we roll below-market leases to higher market rates.”
The vacancy rate in the 105 million-square-foot submarket along the L.A.-Orange County border was 1 percent at the end of the second quarter 2023, according to CBRE (CBRE). Investment sales in Greater L.A. are second in volume only to the neighboring Inland Empire.
Rexford’s portfolio includes 368 properties with approximately 45.1 million rentable square feet of industrial space.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
