Rexford Industrial’s 2021 Investments Near $600M
In July and August, the firm purchased three properties totaling $115 million purchased with cash-on-hand.
Rexford Industrial has closed another stellar round of acquisitions in Southern California. In July and August, the firm acquired three value-add industrial properties totaling $115.2 million. The transactions bring the firm’s 2021 investment acquisition activity to $585 million. The three properties were purchased with cash-on-hand.
The three properties include a 5.8-acre redevelopment site, a 107,023-square-foot industrial building and a 22.3-acre industrial outdoor storage site. All three properties are located in infill Southern California markets.
The 5.8-acre development site is located at 1901 Via Burton in Fullerton. Rexford purchased the property for $24.2 million. It plans to build a 139,000-square-foot warehouse with 36-foot clear height and a secure storage yard, and it anticipated the stabilized unlevered cash yield on total investment is projected to be approximately 5.5% upon lease-up.
The 107,000-square-foot industrial building is located at 1555 S. Cucamonga Ave in Ontario. Rexford purchased this property for $21 million. The property is currently 100% occupied with a near-term lease expiration. Once vacated by the tenant, Rexford will redevelop the site with a new 213,000-square-foot class-A logistics building featuring 36-foot clear heights, and it anticipates the stabilized unlevered cash yield on total investment is projected to be approximately 6% upon lease-up.
Finally, the 22.3-acre site is located in Los Angeles’ South Bay submarket at 1800 E. Lomita Blvd. Rexford purchased the property for $70 million. It is 100% leased to credit tenants, and has zoning for outdoor container storage and stacking. The investment will generate an initial 3.6% unlevered yield; however, current in-place rents are 50% below market, which provides upside opportunity overtime.
This is only the latest round of major purchases for the firm. In June, Rexford Industrial acquired five properties in local infill markets for $188.9 million, bringing its investment activity for the year to $420 million. The purchases include The Box Yard in Downtown Los Angeles, which traded hands for $94 million. The 261,582-square-foot property was 95% leased at the time of the sale to several tenants across a broad swath of industries, including e-commerce, tech, entertainment/studio, fashion, arts and creative uses.