{"id":1004601950,"date":"2022-09-08T03:59:27","date_gmt":"2022-09-08T11:59:27","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004601950"},"modified":"2022-12-08T19:05:59","modified_gmt":"2022-12-09T03:05:59","slug":"rexford-acquires-100m-asset-in-los-angeles","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/rexford-acquires-100m-asset-in-los-angeles\/","title":{"rendered":"Rexford Buys $100M Asset in Los Angeles"},"content":{"rendered":"
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920 E. Pacific Coast Highway<\/p><\/div>\n

One of Southern California\u2019s most active industrial investors continues its strategy of targeting infill properties. Rexford Industrial <\/strong>closed on a $100 million off-market acquisition in the Carson submarket, from ACX Global<\/strong>, which also acts as the property\u2019s sole tenant.<\/p>\n

The 148,186-square-foot asset is located on an 8.5-acre parcel at 920 E. Pacific Highway in Wilmington. According to CommercialEdge, the property was completed in 1954 and underwent cosmetic renovation in 1998. It previously traded in 2011, when ACX acquired it for $14 million. The low-coverage logistics facility is port-adjacent and situated within the overweight trucking corridor.<\/p>\n

Rexford expects to generate a 4.1 percent unlevered cash yield on the investment, growing by 4.0 percent on annual contractual increases. The deal was a long-term sale-leaseback transaction, with ACX continuing to occupy the building. The price equated to $271 per square foot, somewhat below the market\u2019s average.<\/p>\n

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READ ALSO:<\/strong> 5 Ways CRE Investors Can Get Recession-Ready<\/a><\/p>\n

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This transaction was the largest of the seven acquisitions, which totaled $338.9 million, that Rexford completed during the third quarter of 2022.<\/p>\n

In August, the investor bought an industrial asset at 2880 E. Ana St. for $35.6 million\u2014or $213 per square foot\u2014from Marmon Properties LLC. Upon lease expiration, Rexford intends to redevelop the 3.7-acre site into an industrial outdoor storage facility<\/a>. The investor expects to generate a 4.1 percent unlevered cash yield, projected to grow to an unlevered stabilized cash yield on total investment of 5.2 percent.<\/p>\n

Another August acquisition involved the property at 3901 Via Oro in Long Beach, also slated for redevelopment upon lease expiration. The site provides direct access to interstates 404 and 710 and is situated in proximity to the Ports of Los Angeles and Long Beach. Rexford paid $20 million or $146 per square foot for the asset, expecting an unlevered cash yield of 4.3 percent, projected to grow to 5.0 percent on total investment.<\/p>\n

Other Southern California acquisitions<\/h2>\n

Rexford’s other third quarter purchases included:<\/p>\n