Los Angeles-based Rexford Industrial Realty Inc., a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, has recently acquired a six-building industrial park. The purchase price was approximately $210.5 million.
The acquisition was funded with the company’s line of credit as well as the issuance of a $125 million note. Separately, the company recently launched a new “At the Market” stock offering program with total capacity of $150 million, having utilized the previous $125 million ATM program.
According to Howard Schwimmer and Michael Frankel, co-CEO’s of the company, “This acquisition presented a rare opportunity to acquire a critical mass of six Class A industrial buildings within the highly desirable South Bay submarket, adjacent to the nation’s two largest ports and at the infill nexus of the nation’s largest regional population. The complex is 99% leased at in-place lease rates estimated to be approximately 25% below market, on average, presenting opportunities to increase cash flow as 76% of current tenant leases roll through the end of 2020. Year to date, we have completed almost $500 million of acquisitions within our target infill Southern California industrial markets, as we remain focused on the execution of our internal and external growth strategies to increase cash flow and to drive long term value creation for our shareholders.”
The company acquired Rancho Pacifica Industrial Park, consisting of six buildings totaling approximately 1.17 million square feet on 56.01 acres, for $210.5 million, or approximately $180 per square foot. Located within the South Bay submarket in Rancho Dominguez, California, the property encompasses six multi-tenant industrial buildings leased to 23 tenants, featuring market-leading dock-high loading and 24- to 30-foot warehouse clearance within a unique gated, fully secured complex.
The property is located adjacent to the Alameda Intermodal Corridor six miles from the Ports of Long Beach and Los Angeles, with access to five major freeways within a ten-mile radius. According to CBRE, the vacancy rate in the 220 million square foot South Bay industrial submarket was 0.6% in the first quarter of 2017.