Rexford Industrial Realty has bought 3 million square feet of industrial properties in Southern California from Blackstone in a whopping $1 billion deal, adding almost 7 percent of square footage to its portfolio.
Rexford acquired 48 properties, which are scattered across Los Angeles and Orange counties, the firm announced on Thursday. The sale came out to around $332 per square foot on average.
Rexford used proceeds from corporate debt sales and cash on hand for the acquisition, rather than any sort of mortgage collateralized by the properties.
The portfolio is 98 percent leased, though Rexford did not disclose the addresses.
Blackstone sold the properties through a number of different ventures, including Blackstone Property Partners, Blackstone Real Estate Partners and Blackstone Real Estate Income Trust.
In a statement, David Levine, who jointly runs acquisitions in the Americas for Blackstone’s real estate group, called the deal an “excellent outcome” for investors.
Rexford has reaped the benefits of Southern California’s tight industrial market over the last few years, starting in 2021, when vacancy across many Southern California industrial markets dropped below 1 percent, as consumers pivoted to making more online purchases and companies needed extra space to store goods during the pandemic.
The REIT has spent the last several years in “buy” mode. The firm spent $1.5 billion to acquire property in 2023, down from $2.4 billion in 2022.
At the end of 2023, Rexford reported $797 million in total revenues, up 26 percent from the year prior, and $249 million in net income — up 41 percent from the end of 2022, according to financial reports.