Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”), a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, recently announced the acquisition of two industrial properties totaling $12.2 million. The acquisitions were funded using cash on hand.
“These acquisitions demonstrate our ability to methodically source attractive off-market investment opportunities in Southern California’s highly competitive and supply-constrained infill industrial markets,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “Ash Street is a well-located highly functional industrial property, with attractive in-place cashflows in the North San Diego County submarket. Rye Canyon Road provides a value-add opportunity through repositioning into a two-tenant property. We believe our research-driven originations platform and deep investment pipeline will continue providing us attractive opportunities to grow Rexford’s portfolio of high-quality assets and deliver long-term value to our shareholders.”
The Company acquired 25413 Rye Canyon Road, located in Santa Clarita within the San Fernando Valley submarket, for $5.5 million, or $115 per square foot. The property contains 48,075 square feet on 2.60 acres of land, and is currently 40 percent leased. While retaining the current tenant in-place, the Company intends to demise the property into a two-tenant building and complete value-add renovations. According to CBRE, the vacancy rate in the 174 million square foot San Fernando Valley submarket was 1.6% at the end of the fourth quarter 2018.
The Company also acquired 2455 Ash Street, located in Vista within the North San Diego County submarket, for $6.7 million, or $157 per square foot. The property contains 42,508 square feet on 3.45 acres of land, and is 100% leased to a single tenant. The building features dock-high loading, 22-foot clearance and a private yard. The Company intends to harvest cash flow from an existing long-term lease and will perform minor upgrades adding value upon re-leasing. According to CBRE, the vacancy rate in the 53 million square foot San Diego County submarket was 5.5% at the end of the fourth quarter 2018.
About Rexford Industrial
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 181 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet. For additional information, visit www.rexfordindustrial.com.