Rexford Industrial has acquired two industrial properties for $194.4 million. The properties were purchased in off-market transactions with cash on hand. The transaction brings Rexford Industrial's year-to-date transaction activity to $779 million.

Located in Southern California, the two properties purchased by Rexford are 8210-8240 Haskell Ave. in Van Nuys and 3100 Lomita Blvd in Torrance, and both properties total 629,224 square feet. The latter was the larger of the two transactions, trading hands for $182 million. The 575,976-square-foot, five-building light industrial and manufacturing property is 91% leased to three credit tenants. Immediately, the property is expected to generate an initial yield of 5.3% with room for growth as Rexford takes advantage of rent escalations. As part of the transaction, Rexford absorbed an existing loan and incurred at $20.4 million prepayment fee.

The property also has some unique potential. When the current leases expire, Rexford could either renew or build a new class-A property on the site, and it has shown interest in both strategies.