{"id":1004587022,"date":"2022-06-22T03:37:20","date_gmt":"2022-06-22T11:37:20","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004587022"},"modified":"2022-12-09T02:06:51","modified_gmt":"2022-12-09T10:06:51","slug":"rexford-reit-218m-industrial","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/rexford-reit-218m-industrial\/","title":{"rendered":"Rexford Completes $218M in SoCal Deals"},"content":{"rendered":"
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29125 Ave. Paine, Valencia, Calif.<\/p><\/div>\n

Rexford Industrial <\/strong>has expanded its industrial footprint in the tight infill markets of Southern California. The REIT purchased six properties for a total of $218 million, totaling 535,682 square feet in the metro Los Angeles and Orange County markets.<\/p>\n

Rexford continued to apply its value-add strategy through the region<\/a>, with year-to-date investments totaling $993 million. June\u2019s purchases were funded with a combination of cash on hand and the company\u2019s line of credit. The REIT currently owns roughly 30 million square feet in Los Angeles and Orange County, according to CommercialEdge data.<\/p>\n

The purchased assets are a mix of single and multi-tenant properties, ranging from 18,147 to 175,897 square feet. Rexford aims to increase the portfolio\u2019s revenue through a combination of lease renewals and redevelopment. According to its first quarter earnings report, the REIT had an average of 99.2 percent same property occupancy.<\/p>\n

Increasing value in high-demand markets<\/h2>\n
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2400 Marine Ave., Redondo Beach, Calif.<\/p><\/div>\n

On a per-square-foot basis, the most expensive purchase was the property at 2400 Marine Ave. in Redondo Beach, acquired at roughly $600 per square foot\u2014$30 million in total. The 50,000-square-foot building\u2019s tenant roster includes Amazon <\/strong>and Uber<\/strong>. According to CommercialEdge, the building previously traded last year for $24 million.<\/p>\n

The largest among new purchases is located at 29125 Avenue Paine in Valencia, within Vista Business Park. It was constructed in 2001 and offers 175,897 square feet. Rexford acquired it for $45 million\u2014$256 per square foot\u2014from The Krausz Cos. <\/strong>The new owner plans to renew the single-tenant lease or re-lease the asset to increase its revenue, as current rent is roughly 30 percent below market.<\/p>\n

One of the assets is an office building in Orange County, which Rexford plans to redevelop after the current leases expire. Located in Tustin, at 15771 Red Hill Ave., the company acquired it for $46 million\u2014$177 per square foot\u2014from SteelWave<\/strong>. The 96,534-square-foot building is leased to three tenants.<\/p>\n

Rexford also recently acquired the following three properties:<\/p>\n