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Rexford Industrial Realty Acquires Industrial Complex in Southern California’s Inland Empire

07/25/2017
Rexford Industrial Realty, Inc., a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets, acquired an industrial property for approximately $19.8 million at 11190 White Birch Drive in the Golden State’s Inland Empire West submarket.

The Inland Empire stretches through Southern California, including cities in western Riverside County and southwestern San Bernardino County such as Rancho Cucamonga.

Rexford Industrial owns 143 properties with approximately 17.9 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet.

According to company officials, Rexford acquired 11190 White Birch Drive for approximately $99 per square foot. The industrial building contains 201,035 square feet on 9.27 acres of land and is 100% leased to a single tenant in the logistics industry on a triple net basis at below-market rent. The property features 26-foot clearance, 26 dock-high doors, and provides easy access to the 10 and 15 freeways.

“The building was originally constructed for two-tenant occupancy and, upon lease expiration, the property has the potential for efficient re-tenanting to two tenants at higher rents,” officials said. According to CBRE, the vacancy rate in the 281 million square foot Inland Empire West submarket was 1.4% at the end of the second quarter 2017.

"This acquisition continues to demonstrate our ability to source off-market transactions across our supply constrained target infill Southern California submarkets at compelling values," stated Howard Schwimmer and Michael Frankel, Co-CEO of the Company.

"This well-located property has significant rental upside, allowing us to capture near term cash flow and, upon lease expiration, the potential to roll rents to higher market rates. As we progress through the second half of 2017 and beyond, we continue to execute our internal and external growth strategies to drive cash flow and to create long term shareholder value," he added.

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