Rexford Adds $38M Deal in Santa Clarita
By Greg Cornfield August 21, 2023 3:05 pm
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Rexford Industrial Realty can’t stop growing in Southern California.
Colliers (CIGI) announced the Los Angeles-based real estate investment trust closed on two fully leased, single-tenant industrial assets in the Santa Clarita Valley in a deal totaling $38 million. The two properties are adjacent to three others in Rexford’s portfolio.
The adjacent sites at 27712 and 27756 Avenue Mentry span 220,753 square feet over more than 9 acres in Valencia. Records show the two sites were owned by Forrest Machining, which also is tied to the property’s address, suggesting it could be a sale-leaseback deal.
“The long-term lease on these assets provides the buyer with the secure cash flow they were looking for,” Colliers’ Matt Dierckman said in a statement. “This stability, combined with the added benefit of owning the three other adjacent properties, puts Rexford in an excellent position for the future.”
L.A. County is home to one of the strongest industrial real estate markets in the nation. New leases signed in the past 12 months averaged $19.92 per square foot, $7.20 more than in-place rents, according to a report from CommercialEdge. L.A. also has the second-highest sales price per square foot in the nation after the first six months of the year at $344. (The national average is $129 per square foot.)
Similar to the rest of the nation, total sales volume for L.A. so far this year — at $1.2 billion through the first six months — is below the $2.3 billion after the same period last year.
Colliers’ Dierckman, David Harding, Greg Geraci and Billy Walk represented both the buyer and seller in the Rexford deal.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
