Rexford Industrial Realty said it has added a 36-acre distribution center in the city of Commerce to its vast portfolio.
The Westside-based real estate investment trust paid $121 million, or $174-per-square-foot, for the massive property at 5300 Sheila Street, according to the Los Angeles Business Journal. The property includes a 695,000-square-foot building with 36-foot-high ceilings and four acres of land that can accommodate up to 435 containers or trailers.
The transaction is a leaseback deal with the national grocery distributor Supervalu, based in Minneapolis. Supervalu is selling the property along with seven others around the country adding up to over 6.2 million square feet, according to Real Capital Analytics. Supervalu is paying below market-rate rents, according to Rexford.
Industrial-heavy Commerce has seen a number of large deals this year.
Blackstone paid $42 million for a three-building office and distribution center in January. Not long after, Pennsylvania-based Liberty Property Trust picked up a business park in the city in February for $93 million. Magellan Group sold a 144,000-square-foot storage center nearby for $36 million.
Rexford also announced a $6.1 million acquisition of a 1.5-acre Anaheim industrial site. That property is 100 percent leased at rates around 30 percent lower than market rate for the next two years. The company said it will renovate and upgrade the property to raise rents at the end of the current lease. [LABJ] – Dennis Lynch