“We have pursued this property for nearly 10 months and were able to purchase the building at a substantial reduction from its original listing price and at a substantial discount to replacement cost,” says Frankel. “Rexford worked closely with the seller, and our ability to close on an all-cash basis with speed and certainty.”

The company has also acquired Grand Commerce Center, a 101,187-square-foot, multi-tenant industrial complex located at 600 S. Grand Ave. in Santa Ana, CA, which sold for $7.8 million, or $77 per square foot. Rexford purchased the 80% leased property in a lender short sale, and the investment represents a substantial opportunity for Rexford to add value by professionally managing the project. Rexford estimates that it purchased the property at approximately 50% below replacement cost.

“These acquisitions are consistent with our goal to work with distressed sellers to acquire industrial properties in high-barrier Southern California infill industrial markets where we can add value,” adds Howard Schwimmer, co-founder and senior managing partner. “The favorable market fundamentals and Rexford’s unique penetration of the infill industrial markets in the Southland represent a compelling advantage in the execution of our investment strategy.”

Rexford Industrial Fund V has also purchased the underlying mortgage loans on Calle Perfecto Business Park in San Juan Capistrano, CA, and Pasadena Foothill Center in Pasadena, CA. The loans were purchased on an all cash basis and closed in 10 days. Terms of the loan purchases were not disclosed.

Calle Perfecto Business Park is a 99,500-square-foot, five-building light industrial complex that is 92% leased. The property, built in 2000, is exceptionally well-located fronting Interstate 5 and features 24-foot clear height. Pasadena Foothill Center is located in the East Pasadena sub-market, and is a five-building, 55,100-square-foot light industrial/flex project that was built in 1957.

“These note purchases demonstrate Rexford’s ability to make attractive investments tied to well-located industrial property through a range of deal structures representing solutions for lenders or distressed owners,” says Frankel.

Rexford Industrial has carved a specific niche in the highly fragmented market for light industrial and distribution buildings that cater to medium-sized tenants. “Our experience in this market segment and our ability to close quickly through our proprietary investment fund provides Rexford a decided competitive edge,” adds Schwimmer. “We are in the midst of an outstanding opportunity to acquire industrial assets where we can add value leveraging our singular focus and longstanding experience in Southern California’s industrial markets.”