Rexford Closes on $245M of SoCal Investments, Including Massive Brewing Site
By Nick Trombola October 30, 2023 3:35 pm
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Rexford Industrial Realty has closed on two deals in Southern California worth a combined $245 million.
The Los Angeles-based REIT acquired the fee simple interest in a fully leased property at 15801 West First Street, in Irwindale, Calif., for $120 million, or $121 per interior square foot. The deal was an off-market transaction from the seller, which records show was Pabst Brewing Company. The 993,142-square-foot property on 75 acres near Interstate 210 is the site of Irwindale Brew Yard, currently occupied by City Brewing Company. The site is leased to the tenant for eight years, with the option to extend long term.
Rexford also issued a $125 million loan to the seller, securitized by an adjacent 150-acre industrial development site. The five-year, fixed-rate loan has an effective interest rate of 8 percent and includes a right of first offer for Rexford to acquire the development site in the future.
The deals are part of $1.4 billion in new property investments so far this year. Rexford also has a near-term pipeline of approximately $100 million in investments under contract or accepted offer.
“These investments demonstrate Rexford Industrial’s ability to leverage our deep, proprietary access to significant value-creation opportunities within our target infill Southern California industrial property markets,” Rexford Co-Chief Executive Officers Howard Schwimmer and Michael Frankel said in a joint statement.
The combined $245 million investments were funded via proceeds from cash settlements and cash on hand, and are projected to yield 6.8 percent in returns before interest payments.
Rexford acquired three other Southern California industrial properties in September for $46 million, two in L.A. County’s South Bay, and the other in Gardena.
The industrial vacancy rate increased across Greater Los Angeles during the third quarter of 2023, except in the San Gabriel Valley submarket, which stayed at 1.5 percent, according to CBRE.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
