Rexford bypasses rate hike on $218M spree of deals
Industrial specialist uses cash, set credit line to add six industrial properties in LA, OC
Rexford Industrial Realty isn’t slowing down on the Southern California acquisition trail.
The company spent $218 million on six industrial properties in Los Angeles and Orange County in June, according to a Tuesday announcement.
Rexford bought five properties in Los Angeles — two in the San Gabriel Valley and three in the South Bay. The other deal came in Tustin in Orange County.
Last month, Rexford spent $164 million on industrial properties in Southern California.
Rexford used cash on hand and a set line of credit to bypass acquisition loans, which are becoming more expensive as interest rates rise.
“There’s a lot of competition leaving the market,” Rexford’s head of acquisitions, Patrick Schlehuber, told TRD last week. “Anyone who needs debt to close and there’s a lot of those firms.”
In the Valley, the firm bought a 175,900-square-foot building in Valencia for $45 million, or about $256 per square foot. The property, located at 29125 Avenue Paine, is fully leased to Vision Media Management, though Rexford plans to re-lease the property or renew at market rates once the lease is up.
Rexford also bought a 18,000-square-foot warehouse at 14350 Arminta Street in Panorama City — a property that sits adjacent next to three of its existing buildings — for $8.4 million, or $463 per square foot.
The firm’s priciest deal came in at $600 per square foot — in Redondo Beach, the firm bought a 50,000-square-foot, fully leased property for $30 million. Located at 2400 Marine Avenue, part of the property is leased to Uber, which uses it as a support location for drivers.
Also in the South Bay, the firm paid $40 million, or $540 per square foot, for a 74,000-square-foot property in Torrance. Tenants at the building, located at 20900 Normandie Avenue, are expected to be paying rents 40 percent below current market rates, Rexford said.
Rexford is also planning a redevelopment at 14527 San Pedro Street in L.A., where it bought a 7.7-acre site for $49.1 million. The company is planning to renovate the existing 121,000-square-foot building on site into an outdoor storage facility.
In Orange County, Rexford is also planning to redevelop six acres at 15771 Red Hill Avenue in Tustin, once leases expire. The company bought that site for $46 million.