Rexford buys Hertz rental car site near LAX for $143M

Need a rental car? Rexford Industrial Realty can help, after its purchase of a Hertz lot near LAX for $143 million. 

The industrial-focused REIT bought the 18-acre property at 9000 Airport Boulevard in a sale-leaseback deal last month, which came out to $179 per land square foot, according to a release. 

Rexford did not name the tenant, but records show it was previously owned and occupied by Hertz, the car rental company that emerged from bankruptcy in 2021.

Hertz will lease back the property for three years, under a deal that will increase rents by 4 percent each year. 

The site is zoned for industrial use, according to Rexford, giving the firm the option to develop a Class A industrial development on the land or use it for outdoor storage. 

The property was bought using cash on hand, proceeds from a recent bond offering and equity agreements, rather than debt. 

The deal also closed before the City of L.A.’s new transfer taxes went into effect, adding a 5.5 percent tax on sales over $10 million. By closing before April 1, Hertz saved $7.9 million on the deal. 

Rexford also announced it purchased 26 acres in San Diego for $200 million, or $388 per square foot, where the firm could also build Class A industrial. 

Because the firm is less reliant on debt to make acquisitions, it has slowed down its purchases, though it’s still making big-ticket buys. From June to mid-July of last year, the firm spent $660 million on acquisitions. 

In March, the firm also sold a 48,000-square-foot building at 8101 Orion Avenue in Van Nuys for $17 million, or $351 per square foot — also avoiding the city’s new transfer tax. Rexford purchased the land for the building for $5.6 million in 2013, records show.