Rexford Industrial Profits Jump

It’s earnings season.

Rexford Industrial Realty reported $113 million in net income in the second quarter, a 42 percent increase from a year earlier. The Los Angeles-based industrial real estate investment trust’s revenues ticked up, too.

Co-Chief Executives Micheal Frankel and Howard Schwimmer attributed it to what they called “the resiliency of our business model in today’s dynamic market environment,” in the firm’s earnings release.

“The long-term, superior supply and demand drivers within infill Southern California, our substantial embedded growth opportunity, fortress-like balance sheet and best-in-class team continue to deliver growing value to our stakeholders,” the two said.

Rexford executed 99 new and renewal leases, totaling 1.7 million square feet and sold two properties for a total sales price of about $82 million: one in Orange County and another in San Diego. The portfolio occupancy rate remained virtually flat at 96 percent.

“While leasing activity remains steady and tenant health continues to be solid, macroeconomic and tariff uncertainty are still impacting some tenant decision making — this is putting some pressure on overall demand, impacting rent levels and lease up timeframes,” COO Laura Clark said during the company’s earnings call.

Multifamily complex with view sells for $62M

Far West Management, developer and operator of a luxury waterfront apartment complex in Marina Del Ray, sold Villa Del Mar to an undisclosed buyer for $62 million.

The deal included a cap on how much the landlord can increase rent connected to an inflation measure, an almost $7 million anchorage improvement due toward the end of the decade, and a ground lease with 35 years remaining; the buyer assumed that ground lease with the County of Los Angeles, which owns the land.

The 198-unit multifamily complex at 13999 Marquesas Way was developed about 50 years ago, and the seller spent more than $27 million in capital improvements over the past decade.

The property is on more than 5 acres and has a 1,500-linear-foot view of the marina. The complex holds one- and two-bedroom apartments with private balconies or patios, plus a pool and spa, tennis and basketball courts, a fitness center and boat slips.

It’s the first time a waterfront apartment complex has traded hands in Marina del Rey in more than five years. “This was a rare opportunity to acquire a flagship coastal asset with inherent scarcity, stable cash flow, and numerous value-creation avenues,” Colliers’ Kitty Wallace, who brokered the deal, said.

A refinancing nears

Westfield Century City’s owner is close to a refinancing deal for the property: a $925 million commercial mortgage-backed securities package set to close this month.

This would be the second round of financing in two years for Unibail-Rodamco-Westfield’s shopping center. Bank of America, Goldman Sachs, Morgan Stanley, Santander Bank and a Deutsche Bank affiliate are expected to co-originate the debt — and replace the other $925 million CMBS package originated by Morgan Stanley. The property has no other debt.

Unibail-Rodamco-Westfield purchased the mall for $165 million in 2002. The mall was valued at more than $2 billion in May this year. Vacancies clearly aren’t an issue; the mall currently has a 95.6 percent occupancy rate with more than 250 tenants.

The company has sold off other, less successful assets. In California, that included the Westfield Santa Anita for $537.5 million; The Village in Los Angeles’ San Fernando Valley for $325 million; and the Westfield Mission Valley in San Diego for $290 million.

“We have made the strategic decision to retain our high-performing flagship assets in the U.S., which will deliver further growth and value creation,” Unibail-Rodamco-Westfield CEO Jean-Marie Tritant recently said.

Condo conversion time

Developer Crescent Heights filed an application with the City of Los Angeles to convert a 40-story, 283-unit luxury apartment building in Century City into condominiums. Crescent Heights developed the property called Ten Thousand in 2017. It could be Los Angeles’ biggest condo conversion in decades.

The plans for 10000 Santa Monica Boulevard were not immediately clear, but the developer said it doesn’t plan to undergo any construction, which means it could take four to six months from start to finish.

This wouldn’t be a first for Crescent Heights. Last year, the developer announced it was converting Wilshire Medical Center’s medical offices into a 200-unit apartment building. Crescent Heights purchased the property at 6200 West Wilshire Boulevard in Beverly Grove from Wilshire Center Building in 2020 for about $54 million.

“Delivery will be later this year following a full renovation of the common areas and building systems, including the facade,” Elliott Kahn, the L.A.-based partner at Crescent Heights, told The Real Deal at the time.

Mixed-income housing incoming

Shopoff Realty got the green light to develop an 18-acre plot of land in Fountain Valley into mixed-income housing, partnering with nonprofit affordable housing developer National CORE and Fortune 500 homebuilder Lennar.

The Euclid + Heil development, located at 16300 Euclid Street, is set to hold 304 market-rate apartments and 83 affordable units for senior citizens. It will include 36 two-story, for-sale triplexes and 183 three-story, for-sale townhomes, too. There will be swimming pools and parks.

“As California continues to tackle its housing shortage, we believe the addition of this project and its diverse product mix may benefit the greater community for generations to come, offering both for-rent and for-sale product in a supply-constrained market,” Shopoff Chief Executive William Shopoff said.

The goal is for the rentals to open in summer 2028. For-sale homes will be completed in phases, from summer 2028 into spring 2029.

The design team includes landscape architect CDPC and architecture firm AO.

Culver City office campus seller revealed

Sunny Hills Capital Management Company purchased an office campus in Culver City for $72.5 million from a previously undisclosed seller. Turns out the seller was a New York Life Insurance affiliate: New York Life Real Estate Investors.

The deed for the property was signed by Thomas Hwang, senior director of asset management at New York Life Real Estate Investors. The deal for the about 462,000-square-foot complex at 400 and 600 Corporate Pointe comes out to $160 per square foot.

In recent years, the Culver City offices underwent an about $19 million capital renovation. The property is currently leased to 35 tenants in all sorts of sectors: insurance, real estate, health care and research, entertainment and cosmetics.

“This is another example of a family office syndicate, which included both domestic and foreign investors, taking advantage of a tremendous basis opportunity,” Newmark’s Kevin Shannon, who represented the seller, said. “Culver City is a desirable West Los Angeles submarket, which will provide tremendous long-term upside for these patient basis investors.”