Rexford Industrial Buys 4 SoCal Assets for $83M

6245 Providence Way

Rexford Industrial Realty has acquired four industrial assets in Southern California, in off-market transactions totaling $82.7 million. The company funded the acquisitions through a combination of cash on hand, operating partnership units, proceeds from future equity settlements and Rexford Industrial’s line of credit.

The properties the company purchased in March include 700-806 W. 14th St. and 701-733 W. Anaheim St. within L.A.’s South Bay area; 19900 Plummer St. within the L.A. San Fernando Valley; 6245 Providence Way in the Inland Empire and 13711 Freeway Drive in the L.A.–Mid-Counties region.

Moreover, in the first quarter, Rexford Industrial completed a total of $458 million in investments. Of these, 85 percent were purchased in off-market or lightly marketed transactions, according to prepared remarks by Howard Schwimmer and Michael Frankel, Co-CEOs of Rexford Industrial.

Southern California focus

The company purchased 700-806 W. 14th St. and 701-733 W. Anaheim St. in Long Beach, Calif., for $24 million. The property is a 123,532-square-foot industrial park located on 4.8 acres less than 2 miles northwest of downtown Long Beach. According to CommercialEdge data, the property also features 3,000 square feet of retail, as well as 164 parking spaces in a 1.4 spaces per 1,000 square feet parking ratio. Tenants at the property include companies such as California Food Trucks, Peytch’s Automotive, Wilorco and THA Connection. Lee & Associates currently provides brokerage services for the property.

19900 Plummer Street in Chatsworth, Calif., traded for $15 million. Rexford Industrial plans to either redevelop the industrial-zoned site by constructing a 78,000-square-foot Class A warehouse and remove the existing building, or renew the agreement with the in-place tenant, Phillips Graduate University, upon its lease expiration. Originally built in 1983, the property was completely renovated in 2015, according to CommercialEdge data. A total of 252 parking spaces are currently available, in a 5.8 spaces per 1,000 square feet parking ratio.

Located on 2 acres in Eastvale, Calif., within the Inland Empire–West submarket, the 27,636-square-foot 6245 Providence Way traded for $9.7 million. Chase Partners was the seller. When the current lease expires, Rexford Industrial plans to re-lease the property, as the current rent is estimated to be 40 percent below market rate. Socal Service Development is the only tenant at the 2017-built property, according to CommercialEdge data. CBRE provides brokerage services for the asset.

13711 Freeway Drive

Rexford Industrial paid the largest sum for 13711 Freeway Drive in Santa Fe Springs, Calif., which traded for $34 million in a short-term sale-leaseback transaction. The company plans to construct a 108,000-square-foot Class A building on the 5-acre site. The seller was Martinez Trucking, which will continue to lease the 1966-built property. The asset has Interstate 5 frontage, offering easy access into L.A.

The acquisitions align with Rexford Industrial’s strategy to invest in Southern California infill locations. Last month, the company purchased a 231,769-square-foot office campus within Chatsworth Business Park in Chatsworth, Calif., for $42 million, in another off-market transaction. Earlier in February, the company completed five additional acquisitions across Southern California for a combined $170 million.