LOS ANGELES—Rexford Industrial has acquired a five-property industrial portfolio in the Oxnard submarket of Ventura County for $38.7 million from a private foundation that was liquidating its assets. The portfolio totals 408,224-square-feet, and contains 16 multi-tenant buildings.

“About 75% of the projects we own throughout California are multi-tenant projects, and this acquisition really broadens the representation of our portfolio in the Ventura County marketplace,” Howard Schwimmer, co-CEO of Rexford Industrial, tells GlobeSt.com about the purchase. “It provides greater efficiencies through the additional product in terms of our operating and management functions of the existing portfolio.”

While the property comes with a strong 93% occupancy rate and stable cash flow, Rexford plans to utilize its professional asset management program to increase operating margins and cash flow. “Our goal is to add value wherever we can, and so we do see a tremendous opportunity in this investment to institute our professional management program,” Michael Frankel, Rexford Industrial co-CEO, tells GlobeSt.com. “We see a big opportunity to increase the cash flow out of these assets in doing so. That is really an integral part of our strategy.”

Sitting on a combined 28.4 acres, the property has 98 tenant units ranging in size from 2,000 to 6,000 square feet. Although the unit sizes are small, they do feature dock-high loading. When pairing these features with the portfolio's Oxnard location, Ventura County's strongest industrial market, this was a great fit for the company's portfolio. “The Ventura market is one of the submarkets that we focus on, but it isn't one of the larger submarkets that we focus on,” explains Frankel. “In terms of forward acquisitions that might be in Ventura County, it is going to be a small part of our overall buying, but that being said, we really like the fundamentals in certain submarkets of Ventura, like Oxnard.”

This acquisition brings Rexford Industrial's year-to-date acquisitions to more than $350 million (by mid-year, the company had already acquired nearly 1 million square feet), surpassing their publicly stated acquisition goals for the year. “We are really happy with our volume this year, and we do have some other transactions that will close before the end of the year,” adds Schwimmer. Rexford purchased this portfolio using the company's credit facility.