Rexford Industrial Realty, Inc., a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, reported it acquired two industrial properties for $43.5 million in Chatsworth, California.
"We continue to leverage our deep market knowledge and proprietary originations platform to source attractive off-market investments in Southern California's high-demand infill industrial market," stated Howard Schwimmer and Michael Frankel, Co-CEO of the Company.
"Mason Avenue is a four-building industrial complex fully-leased to three entrenched tenants at an attractive in-place initial yield with value-add upside. Fresca Drive is a fully-leased two-tenant industrial building with in-place rents estimated to be significantly below market, providing attractive upside potential upon re-leasing. We've acquired $455 million of industrial property year-to-date and we remain excited about the opportunities before us to continue to grow cash flow and shareholder value into 2019 and beyond,” they added.
The Company acquired 9200 - 9250 Mason Avenue and 9171 Oso Avenue, located in Chatsworth within the LA, San Fernando Valley submarket in an off-market transaction, for a total of $29.5 million, or $115 per square foot.
The industrial complex consists of four industrial buildings containing 256,200 square feet on 11.14 acres of land and is 100% leased to three tenants in the cosmetics industry, all with significant investment in their facilities. At lease roll the Company intends to renew below-market leases to market rates, and, in the event a tenant vacates, opportunity exists to perform value-add functional and building upgrades. According to CBRE, the vacancy rate in the 174 million square foot LA, San Fernando Valley submarket was 1.4% at the end of the third quarter 2018.
In another off-market transaction, the Company also acquired 5593-5595 Fresca Drive, located in La Palma within the Orange County, North submarket for $14 million, or $122 per square foot.
The two-tenant industrial building contains 115,200 square feet on 5.7 acres of land. The property provides significant upside with the potential for future value-add functional and modernization improvements at lease roll, as in-place rents are estimated to be approximately 28% below market. According to CBRE, the vacancy rate in the 114 million square foot Orange County, North Submarket was 0.6% at the end of the third quarter 2018.