The Real Deal Los Angeles

Rexford buys two industrial sites in SoCal
for $40M

Carson location comes with 5-year lease renewal
By Gregory Cornfield | November 14, 2018 10:15AM

263-321 East Gardena Boulevard with Michael S. Frankel (top) and Howard Schwimmer

Rexford Industrial Realty, an aggressive player in the industrial space this year, scooped up two more properties in South L.A. and Carlsbad.

Rexford, based in Los Angeles, said Monday that it had purchased two industrial properties for $40.3 million, using cash on hand.

The first, at 321 E. Gardena Boulevard in Carson, sold for $16.1 million, or $68 per land square foot. In a press release, Howard Schwimmer and Michael Frankel, co-CEOs of the firm, said the site is a 100-percent leased warehouse and container storage facility with access to multiple freeways, the Ports of Los Angeles and LAX.

The single tenant – Western Freight Carrier, Inc. – comprises 55,238 square feet on 5.41 acres, including excess land for container storage. After the transaction closed, the trucking operator signed a new five-year lease.

The vacancy rate in the South Bay submarket was 1 percent at the end of the third quarter, according to CBRE.

The second property is in Carlsbad at 6131 and 6133 Innovation Way. Rexford purchased two new buildings with 14,600 square feet on 8.3 acres for $24.2 million, or $211 per square foot. It has two tenants, and is 72 percent occupied.

The vacancy rate in the San Diego – North County submarket was 4.7 percent at the end of the third quarter, CBRE said.

Rexford has been on a buying binge through most of the year, recently picking up 122,000 square feet in the San Fernando Valley for $22.5 million, and a 36-acre food distribution center in Commerce for $121 million in May.