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

TRD 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
Golden Springs Business Center

Logistics firm inks big lease in Santa Fe Springs as industrial demand remains high

Logistics firm inks big lease in Santa Fe Springs as industrial demand remains high
Heather Crossner and the site (Credit: Google Maps)

Bridge Development plans distribution center outside Torrance

Bridge Development plans distribution center outside Torrance
Daniel J. Moore and the site (Credit: Rockefeller Group)

Rockefeller Group snags Inland Empire site for logistics centers

Rockefeller Group snags Inland Empire site for logistics centers
Chris DeWitt, and the property (Credit: Google Maps)

Made Goods furniture wholesaler inks giant lease in City of Industry

Made Goods furniture wholesaler inks giant lease in City of Industry
California is allowing barbershops and salons to reopen under new coronavirus mitigation guidelines (Credit: Noam Galai/Getty Images)

California allows barbershops to reopen, but LA holds back

California allows barbershops to reopen, but LA holds back
Michael Flood and the warehouse (Credit: Google Maps)

LA Food Banks pays $52M for warehouse, ending long search

LA Food Banks pays $52M for warehouse, ending long search
LA County assessor Jeffrey Prang

LA County properties valued at nearly $2 trillion…before pandemic

LA County properties valued at nearly $2 trillion…before pandemic
Brett Dedeaux and the property (Credit: Dedeaux Properties and DB&R Marketing Communications via Commercial Observer)

Dedeaux, Stockbridge boost industrial portfolio

Dedeaux, Stockbridge boost industrial portfolio
arrow_forward_ios

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

Loading...