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The Real Deal Los Angeles

Rexford adds two warehouse properties to portfolio

By Dennis Lynch | June 15, 2018 01:00PM

A month after dropping $121 million on a single distribution center, Rexford Industrial Realty has added two more warehouse properties to its vast portfolio.

The Westside real estate investment trust announced this week that it bought a 65,000-square-foot warehouse in Irwindale for $12 million, and a 136,700-square-foot logistics center in Compton for $30 million.

The Irwindale property, at 4416 Azusa Canyon Road, is a leaseback transaction with an LLC tied to the Pepsi Bottling Group, which is the sole occupant of the property. The sale comes out to around $184-per-square-foot.

Rexford inked a leaseback deal with the grocery distributor Supervalu in the City of Commerce in May, paying $121 million for a 36-acre distribution center fully leased to the Minneapolis-based company.

The Compton property is the McKinley Logistics Center at 1420 N. McKinley Avenue, a Class-A property completed last year on 6.7 acres. Rexford bought the property from its developer, Costa Mesa-based Prism Realty Corporation. The deal comes out to $219-per-square-foot.

Flexport, a San Francisco-based freight and logistics company, announced earlier this week that it fully leased the Compton property for its proximity to Los Angeles International Airport. The company does a large chunk of its business with Chinese suppliers.

Last summer, Rexford paid $210.5 million for a six-building industrial center in an unincorporated area just south of Compton. It topped the list of largest industrial deals of the summer in L.A. County.

Rexford owns just under 100 properties in the L.A. area, which account for over half of its $3.1 billion real estate portfolio, according to Real Capital Analytics, the real estate data tracker.

The industrial sector has been gaining steam in L.A. County over the last couple years. Average sales prices rose 17.3 percent in the first quarter year-over-year to $157-per-square-foot, according to a May report by commercial brokerage JLL.