LOS ANGELES—Public REIT Rexford Industrial Realty has acquired a nine-property, 1.53 million–square-foot industrial portfolio for $191 million from CT Realty Investors. The portfolio is located in markets throughout Southern California, and it provides some upside through value-add opportunities.

“CT did a great job of collecting a great Southern California portfolio of institutional buildings. The goal was to acquire class-A assets and exit through a sale,” Darla Longo, vice chairman at CBRE, tells GlobeSt.com. “They had built the portfolio over several years, and this was truly in their business plan. It was also in Rexford's business plan, which is a Southern California REIT.” Longo and her colleague vice chairman Barbara Emmons represented both CT Realty and Rexford in the transaction. Rexford declined to comment on the transaction due to a company policy that prohibits media interaction preceding an earnings call.

Rexford purchased the portfolio with a $100 million accordion on a $125 million unsecured term loan as well as proceeds from a recent public equity issuance. The REIT beat out several other investors for the deal. “We had a lot of bids for pieces, parts and the whole,” adds Longo. “We saw mostly institutional capital, and we had great competition. Rexford was the ultimate buyer. It really catered to that infill-industrial strategy that Rexford had.”

It isn't surprising that the transaction was popular, considering the strength of the Southern California industrial market. “We have the lowest vacancy, and in the markets where this portfolio is positioned, it is very hard to find any supply or land for new development,” says Longo. “We are seeing that in addition to the limited industrial supply, there is a new demand from ecommerce companies. Many of the tenants in these buildings really fit into that category. Class-A infill assets that are institutional quality are in the highest demand.”

The portfolio increases the company's owned square footage by 12%, and is located in Orange County, Inland Empire West, Central San Diego and Los Angeles-San Gabriel Valley. It is 100% occupied by 12 tenants.

LOS ANGELES—Public REIT Rexford Industrial Realty has acquired a nine-property, 1.53 million–square-foot industrial portfolio for $191 million from CT Realty Investors. The portfolio is located in markets throughout Southern California, and it provides some upside through value-add opportunities.

“CT did a great job of collecting a great Southern California portfolio of institutional buildings. The goal was to acquire class-A assets and exit through a sale,” Darla Longo, vice chairman at CBRE, tells GlobeSt.com. “They had built the portfolio over several years, and this was truly in their business plan. It was also in Rexford's business plan, which is a Southern California REIT.” Longo and her colleague vice chairman Barbara Emmons represented both CT Realty and Rexford in the transaction. Rexford declined to comment on the transaction due to a company policy that prohibits media interaction preceding an earnings call.

Rexford purchased the portfolio with a $100 million accordion on a $125 million unsecured term loan as well as proceeds from a recent public equity issuance. The REIT beat out several other investors for the deal. “We had a lot of bids for pieces, parts and the whole,” adds Longo. “We saw mostly institutional capital, and we had great competition. Rexford was the ultimate buyer. It really catered to that infill-industrial strategy that Rexford had.”

It isn't surprising that the transaction was popular, considering the strength of the Southern California industrial market. “We have the lowest vacancy, and in the markets where this portfolio is positioned, it is very hard to find any supply or land for new development,” says Longo. “We are seeing that in addition to the limited industrial supply, there is a new demand from ecommerce companies. Many of the tenants in these buildings really fit into that category. Class-A infill assets that are institutional quality are in the highest demand.”

The portfolio increases the company's owned square footage by 12%, and is located in Orange County, Inland Empire West, Central San Diego and Los Angeles-San Gabriel Valley. It is 100% occupied by 12 tenants.