Rexford Industrial Realty Expands with San Gabriel, California, Site
The Company acquired 14421-14441 Bonelli Street, located in the City of Industry within the LA, San Gabriel Valley submarket, for $131 per square foot. The property consists of a 100% leased, 148,740 square foot single-tenant industrial building on 6.21 acres of land. The building features 16 dock positions, 22'-24' clearance, heavy power and a fenced yard.
According to Rexford officials, the Company intends to either renew the in-place tenant or re-tenant the property at the expiration of the significantly below market in-place lease, with the opportunity to increase rent to market rates.
The building is designed to accommodate two tenants, enhancing its versatility and value-add options for re-leasing in the event that the current tenant vacates. According to CBRE, the vacancy rate in the 153 million square foot LA, San Gabriel Valley submarket was 1.3% at the end of the third quarter 2018.
"We continue to capitalize on our research-driven platform and extensive market relationships to source attractive investment opportunities in Southern California's highly fragmented and supply-constrained infill industrial market," stated Howard Schwimmer and Michael Frankel, Co-CEOs of the Company. "Bonelli Street, a fully-leased industrial building, was acquired in an off-market transaction. As we look ahead to 2019, we continue to see favorable opportunities to grow Rexford's portfolio of high-quality industrial assets to further enhance our cash flow and to create value for our shareholders."
In addition, the company sold 311, 319, and 329 E. 157th Street, located in Gardena within the LA, South Bay Submarket, for $10.4 million. The three buildings contain 48,000 square feet on 3.23 acres of land, and were all sold to owner-occupants. The Company's purchase price for the properties was $65 per square foot, while the Company's weighted average sale price amounts to $207 per square foot. Proceeds from the disposition were recycled in a tax deferred 1031 exchange to fund a portion of the Bonelli Street acquisition.
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