Rexford Industrial Realty has tapped into two deals worth $245 million that include the purchase of a nearly 1 million-square-foot brewery in Irwindale and a loan to a national beer maker.
The Los Angeles-based real estate investment trust paid $120 million for a 993,000-square-foot industrial facility at 15801 West First Street leased by City Brewing, the Commercial Observer reported. The seller was Pabst Brewing, based in San Antonio, Texas.
Rexford also issued a $125 million loan to Pabst, secured by a 150-acre industrial development site next door. The five-year, fixed-rate loan has an interest rate of 8 percent and includes a right-of-first-offer for Rexford to buy the San Gabriel Valley property.
The 75-acre property leased by City Brewing is the site of Irwindale Brew Yard, which Pabst bought in November 2020 for $150 million.
The famous brewery along the 210 Freeway, which once spanned 227 acres, was built by Miller Brewing in 1980 to replace the Irwindale Raceway, which ran drag races until 1973.
The combined $245 million investments were funded by proceeds from Rexford’s cash settlements and available cash, according to the Observer, and are projected to rake in 6.8 percent in returns before interest payments.
They are part of Rexford’s $1.4 billion in commercial real estate purchases this year. The Sawtelle-based REIT also has another $100 million in real estate investments under contract.
Executives said Oct. 19 the company wants to sell some of its real estate to raise capital to reinvest in higher-yielding industrial properties, according to CoStar News. Rexford has been Greater L.A.’s top industrial buyer over the past five years, spending more than $3.7 billion.
In September, Rexford bought three other Southern California industrial properties for $46 million, two in the South Bay and one in Gardena.
In August, it bought two warehouses with 230,500 square feet in Santa Clarita for $38 million, or $165 per square foot.
Rexford reported a $61.8 million profit in the third quarter, up 48 percent from the same three months last year, and up 9 percent from the prior period. It ended the quarter with $204.2 million in revenues, up 25 percent year-over-year and 5 percent from the second quarter.
The industrial vacancy rate rose to 1.8 percent across Greater Los Angeles in the third quarter, except in the San Gabriel Valley, where it stood at 1.5 percent, according to CBRE.
— Dana Bartholomew
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