Rexford keeps up investing pace with $118M purchase of San Fernando Business Center

The REIT added the 500K sf industrial park to its growing portfolio

Los Angeles /
May.May 01, 2019 02:00 PM
Rexford co-CEOs Howard Schwimmer and Michael Frankel and the entrance to the San Fernando Business Center
Rexford co-CEOs Howard Schwimmer and Michael Frankel and the entrance to the San Fernando Business Center

Rexford Industrial Realty continued its active investing this year with the purchase of a San Fernando industrial park.

The Brentwood-based real estate investment trust paid $118 million for the 590,570-square-foot San Fernando Business Center in an off-market transaction. It worked out to about $200 per square foot. About 88 percent of the multi-tenant space is occupied at below-market rate rents, according to a company release.

The seller was Barings Real Estate. CBRE’s Darla Longo, Barbara Perrier, Rebecca Perlmutter, Brett Hartzell and Eric Cox represented Barings.

Connecticut-based Barings is the investment management wing of the Massachusetts Mutual Life Insurance Company.

San Fernando Business Center is nearly 29 acres across five industrial buildings. Three are single-tenant spaces, while the other two are three-tenant spaces. Rexford plans to improve the properties with cosmetic and other upgrades with the goal of securing higher rents.

Rexford is one of the most active industrial investors in the L.A. area in an industrial market that is one of the hottest in the country. Last year saw 7.5 percent rent growth and a steady stream of large deals. Vacancy across L.A. was around 1.4 percent at the close of last year. Though growth slowed somewhat in the fourth quarter, experts are confident that 2019 will be another big year for the sector.

Rexford spent around $500 million last year on acquisitions and is keeping up the pace this year. Recently, it acquired half a million square feet of real estate, mostly in industrial-heavy markets in southern L.A. County, in four transactions.


Related Articles

arrow_forward_ios
Charles Company's Mark and Arman Gabay and a rendering of 550 E. Colorado Boulevard in Pasadena (WATG)
195-room hotel planned for Pasadena’s Playhouse District
195-room hotel planned for Pasadena’s Playhouse District
Bardas Investment Group's David Simon with 6311 Romaine Street
Hollywood’s Television Center readies for $600M makeover
Hollywood’s Television Center readies for $600M makeover
Century Plaza project at 2025 Avenue of the Stars and Woodbridge Capital Partners' Michael. Rosenfeld (CoStar)
Stake in the Century Plaza Hotel heads to auction block
Stake in the Century Plaza Hotel heads to auction block
Valley Central at 44400 Valley Central Way in Lancaster (Google Maps, Getty)
Lancaster shopping center trades for $45M
Lancaster shopping center trades for $45M
UCLA chancellor Gene Block; former Marymount California University campus (UCLA, MCU)
UCLA pays $80M for former Marymount California campus
UCLA pays $80M for former Marymount California campus
IDS Real Estate Group’s co-CEOs David Mgrublian and Murad Siam with Irwindale Speedway at 500 Speedway Drive in Irwindale (Irwindale Event Center, IDS Real Estate, Getty)
Irwindale Speedway site to transform into industrial park
Irwindale Speedway site to transform into industrial park
Commercial real estate, Orange County, Proposition 13
Large landowners in OC could pay more property taxes, critics say
Large landowners in OC could pay more property taxes, critics say
Drawbridge Realty's Mark Whiting and Pacific Center office park at 1600-1610 Saint Andrew Place (Loopnet, Drawbridge Realty, Getty)
Collectibles outfit backed by Mets’ owner Cohen, Nets’ star Durant adds 102K sf at Santa Ana campus
Collectibles outfit backed by Mets’ owner Cohen, Nets’ star Durant adds 102K sf at Santa Ana campus
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...