Rexford Industrial Makes $198M Investment

14874 Jurupa Ave., Fontana. Image courtesy of Rexford Industrial Realty Inc.

Rexford Industrial Realty Inc. has paid $198.1 million, or $382 per square foot, for a five-property portfolio totaling 518,931 square feet in Southern California’s L.A.-South Bay and Inland Empire-West submarkets. The seller was IDI Logistics, according to CommercialEdge data.

The properties are located at 2130-2140 E. Del Amo Blvd. and 20455 S. Reeves Ave. in Carson; 19145 Gramercy Place in Torrance; and 14874 Jurupa Ave. and 10600 Mulberry Ave. in Fontana. The portfolio was fully leased to six tenants at the time of sale.

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Los Angeles-based Rexford Industrial, the nation’s largest pure-play U.S.-focused industrial REIT, completed $2.4 billion of acquisitions last year. The purchases, made through off-market and lightly marketed transactions, were funded with a combination of cash on hand and proceeds from forward equity settlements. In the third quarter of 2022, Rexford Industrial completed seven acquisitions totaling some $339 million.

Howard Schwimmer and Michael Frankel, co-CEOs of the company, said in a prepared statement the company is well-positioned for 2023, pointing to an extensive pipeline of prospective NOI growth driven by significant mark-to-market in-place leases, value-add repositioning and redevelopment projects, plus $400 million of additional accretive investments under contract or accepted offers.

Other Southern California acquisitions

The IDI Logistics portfolio was one of the 10 acquisitions, worth $336.2 million, that Rexford Industrial closed in the fourth quarter of 2022. The remaining purchases involved:

• 14400 S. Figueroa St., Los Angeles, purchased for $49 million, or $234 per square foot. The 4.8-acre site is adjacent to a 1-acre parcel the company acquired in July. Rexford Industrial intends to reposition the combined property into a logistics facility with a 57,000-square-foot, cross-dock building and a container storage yard.
• 4500 Azusa Canyon, Irwindale, acquired for $40 million, or $116 per square foot. The 7.9-acre site has 77,266 square feet of buildings leased to a single tenant through a sale-leaseback.
• 3131 E. Harcourt St. and 18031 S. Susana Road, Rancho Dominguez, bought for $27.5 million, or $208 per square foot. The 3-acre site is adjacent to a 2.5-acre parcel that Rexford acquired in August. The company plans to redevelop the combined sites into a 34,000-square-foot logistics facility with an oversized container storage yard.
• 7817 Haskell Ave., Van Nuys, purchased for $11.1 million, or $128 per square foot. The 2-acre industrial outdoor storage site is fully leased to a single tenant.
• 755 Trademark Circle, Corona, acquired for $10.5 million, or $305 per square foot. The 34,427-square-foot building is located on 1.6 acres and leased to a single tenant through a long-term sale leaseback.

The fourth-quarter deals increased the company’s portfolio by 15 percent over the prior year to 42.4 million square feet. At the end of 2022, Rexford Industrial owned 356 properties, occupied by a stable and diverse tenant base, across infill Southern California.