Rexford Industrial Shells Out $194M for Two SoCal Industrial Buildings
The firm has completed $779 million in industrial transaction so far this year.
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.
8210-8240 Haskell Ave. was the smaller of the two transactions at $12.4 million. The property has three vacant buildings totaling 53,248 square feet with access to the I-405 freeway with immediate access to US-101 and Van Nuys Airport. Following lease-up, Rexford expects a stabilized unlevered cash yield to start at 5%. The firm plans to execute a value-add strategy at the property.
Rexford has been an active buyer in Southern California this year. In June, the company acquired five properties in local infill markets for $188.9 million, bringing its investment activity for the year to $420 million at the time of the deals. The five properties total 660,254 square feet on nearly 29 acres. And in August, Rexford 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.