Rexford Industrial Spends $170M in Latest Round of Acquisitions
The firm acquired five infill industrial properties in Southern California, growing its portfolio to more than 37.2 million square feet.
Rexford Industrial has completed five new acquisitions in Southern California totaling $170 million. The acquisitions bring the REITs industrial portfolio to 37.2 million square feet. The properties were purchases with cash on hand and proceeds from a 1031 exchange.
In this latest round of purchases, Rexford acquired 444 Quay Avenue, 29,760-square-foot port-adjacent building is situated on 1.6 acres of land adjoining an existing Rexford Industrial site, for $10.8 million. Rexford plans to redevelop the site along with the adjacent site into a single-tenant property. The investment is expected to generate 6.2% unlevered stabilized yield on total cost.
Up next, the firm purchased 19475 Gramercy Place, 47,712-square-foot building on 1.9 acres of land and re-lease the site at market rent, for $11.3 million with the expectation of a 5.2% stabilized unlevered cash yield, and 24903 Avenue Kearny, a 214,436-square-foot, fully leased building on 10.1 acres with a long-term lease priced 10% below market rates, for $58.5 million.
The firm also acquired 18455 South Figueroa Street & 501 West 190th Street, a 146,765-square-foot single-tenant flex project, for $64.3 million, and 14005 Live Oak Avenue, a 5.1 acre covered land site contains a single-tenant 56,510 square foot office building subject to a short-term lease, for $25 million. Both properties will be redeveloped.
In addition to these purchases, Rexford also sold 28159 Avenue Stanford in Santa Clarita, for $16.5 million. The 79,247-square-foot multi-tenant office/industrial building was 96% and delivered an unlevered IRR on this transaction to the Company is 9.1%. Proceeds from the sale were reinvested into the acquisition of Avenue Kearny.
Rexford Industrial has been aggressively expanding its Southern California portfolio. Last year, the firm completed $1.6 billion in acquisitions. It completed several rounds of acquisitons to achieve the significant volume, purchasing five properties—all located in prime Southern California markets—in December for $141 million. The firm was particularly active in the second half of the year, more than tripling its acquisitions from August through the end of the year.