Rexford buys industrial property from Prologis for $41M

Industrial-focused firm continues buying binge in SoCal

Oct.October 17, 2019 01:15 PM
6277 E. Slauson Avenue, and from left: Prologis CEO Hamid Moghadam and Rexford Industrial co-CEOs Howard Schwimmer and Michael Frankel (Credit: Google Maps)
6277 E. Slauson Avenue, and from left: Prologis CEO Hamid Moghadam and Rexford Industrial co-CEOs Howard Schwimmer and Michael Frankel (Credit: Google Maps)

Rexford Industrial Realty, one of L.A.’s most active industrial investors, paid $41.3 million for a 92,000-square-property in Commerce, Calif., L.A. County records show.

The firm bought the 92,000-square-foot property at 6277 E. Slauson Ave. from Prologis, a San Francisco-based real estate investment trust that is one of the world’s largest industrial real estate investors.

The deal closed Oct. 4, records show. Westside-based Rexford is one of the largest industrial landlords in Southern California, with more than 22 million square feet of property across the region, about half of which is in L.A. County. It has closed several deals this year, including a $110 million acquisition of five properties in September.

Commerce, located southeast of Downtown L.A., and about 25 miles north of the L.A. port complex, is considered an industrial hub. Records show Prologis picked up the property at East Slauson Avenue for $15.7 million in 2004.

Representatives for Rexford and Prologis did not respond to requests for comment.

The deal comes at a time when L.A. County’s industrial market is showing some signs of slowing down, though not for lack of demand. A new report from CBRE shows that investment sales in the sector are on pace for a record year, with over $7.4 billion worth of industrial properties trading in L.A. and neighboring markets this year.

A lack of supply may slow things down, however. A report from NAI Capital indicates that low availability and high pricing may be discouraging leasing.

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