Rexford Industrial Increases SoCal Footprint

By Jeff Hamann

Rexford Industrial Realty has acquired a portfolio of four industrial properties in Southern California for $62.7 million. The properties, located in the Inland Empire, Orange County and Los Angeles, total 416,843 square feet and are all fully leased to a range of tenants. The seller, MetLife, acquired all four properties in 2013, according to Yardi Matrix.

“These acquisitions contribute 416,843 square feet of 100 percent leased product in prime, supply-constrained infill Southern California with favorable NOI growth potential as below-market in-place leases roll over the next 20 months,” said Howard Schwimmer and Michael Frankel, co-CEOs of Rexford Industrial, in a prepared statement.

The strategy and the prize

Rexford Industrial acquired the four properties using a mix of cash on hand, a draw on the REIT’s line of credit and the $2.4 million sale of a 21,607-square-foot building at 77-700 Enfield Lane in Palm Desert, within the Inland Empire’s east submarket. The portfolio’s acquisition comes shortly after the company acquired a six-building industrial campus in Rancho Dominguez for approximately $210.5 million last year.

The first property, at 302 S. Rockefeller Ave. in Ontario, was constructed in 2000. Leased to Goodwill Industries, the building contains 99,282 square feet of warehouse space. Adjacent to the first, Rexford Industrial also acquired 4355 E. Brickell St. as part of the transaction. Built in 2004, the 95,644-square-foot structure is fully occupied by Torin Automotive Equipment, a manufacturer of car jacks and lifts. Both Inland Empire buildings feature 30-foot clear heights and dock-high loading doors.

Another building in the portfolio, 8315 Hanan Way in Pico Rivera, is situated in Los Angeles’ central industrial submarket. Finished in 1975, the 100,692-square-foot building is home to Bay Cities, a retail packaging, display and in-store signage manufacturer. The company had previously owned the building, but leased it back following a sale to LBA Realty in 2005.

Containing 121,225 square feet of warehouse space across two buildings, the final property is located in Orange County at 12622-12632 Monarch St. in Garden Grove. Occupied by three tenants, the property was built in 1967 and features rail service, a clear height of 27 feet and multiple loading doors.

The portfolio’s acquisition comes shortly after the company acquired a six-building industrial campus in Rancho Dominguez for approximately $210.5 million last year.

Images courtesy of Yardi Matrix