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Rexford Industrial Acquires Five-building Complex

1600 Orangethorpe contains 345,756 square feet on 17.76 acres and is 100% leased.

By David Phillips | davidphillips | | Updated on August 26, 2016

FULLERTON, CA— Rexford Industrial Realty has completed the acquisition of a 5-property industrial complex here for approximately $40.1 million.  The acquisition was funded using cash on hand.

1600 Orangethorpe contains 345,756 square feet on 17.76 acres and is 100% leased. 1600 Orangethorpe contains 345,756 square feet on 17.76 acres and is 100% leased.
“The acquisition of this Orange County industrial complex demonstrates our ability to source high quality assets at attractive pricing within our target Southern California infill submarkets,” stated Howard Schwimmer and Michael Frankel , co-CEOs of the company. “These well-located assets are leased at significantly below-market rents, providing near-term, value-add opportunities to increase net operating income.  As we progress through the second half of 2016 and beyond, we are encouraged by our current pipeline of both internal and external growth opportunities, and remain focused on increasing cash flow to drive long-term shareholder value.” The company acquired 1600 Orangethorpe , located in Fullerton, for approximately $116 per square foot.  The high-image business complex contains 345,756 square feet on 17.76 acres and is 100% leased to eight tenants at average rents estimated to be more than 20% below market.  The project features four single-tenant dock-high loading buildings, one two-tenant dock-high building, and approximately two acres of separately-leased land.  Additionally, the property includes a vacant frontage building previously used for offices, allowing for an immediate repositioning to an industrial use. The buildings enjoy frontage and visibility along Orangethorpe, a high-traffic thoroughfare in the Orange County North submarket.  According to CBRE , the vacancy rate in the 112 million square foot Orange County North submarket was 1.6% at the end of the second quarter 2016. Rexford’s acquisition volume for 2016 now exceed $296 million . Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The firm owns 132 properties with approximately 14.4 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet.

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