Rexford Industrial Realty Acquires Commerce and Anaheim, California Industrial Properties
In an off-market acquisition, the Company acquired 5300 Sheila Street, located in Commerce, within the Los Angeles, Central submarket, for $121.0 million or $174 per square foot. According to company officials, “this exceptional infill property” contains a 100% leased, 695,120 square foot industrial building situated on 35.83 acres of land. The building comprises 36' maximum clear heights, 118 cross-dock loading positions, and nearly 4 acres of excess land accommodating storage of up to 435 trailer / containers.
“ The property is leased at a below-market rent on a long-term triple-net lease to a high-quality, credit tenant,” officials noted.
The site features immediate access to eight Southern California freeways and to the two largest intermodal train facilities in Southern California. The property represents a highly desirable first-mile and last-mile logistics solution positioned less than 5 miles from Downtown Los Angeles, less than 15 miles from Los Angeles International Airport and less than 20 miles from the Ports of Long Beach and Los Angeles. According to CBRE, the vacancy rate in the 289 million square foot Los Angeles, Central submarket was 1.2% at the end of the first quarter 2018.
Rexford also acquired 1190 E. Stanford Court, located in Anaheim, within the Orange County, North submarket, for $6.08 million or $176 per square foot.
This modern, highly-functional 24-foot clear building contains 34,494 square feet on 1.46 acres of land and features dock-high loading and a large fenced yard. The property is 100% leased to a single tenant with in-place rents estimated to be 30% below-market.
Rexford said it “intends to implement functional and cosmetic upgrades and to roll the below-market in-place rent to higher market rent when the existing lease expires in approximately two years.” According to CBRE, the vacancy rate in the 114 million square foot Orange County, North submarket was 0.6% at the end of the first quarter 2018.
"These acquisitions demonstrate our ability to source high-quality industrial property investments at favorable values within infill Southern California, the most sought-after industrial market in the nation," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company.
"Both properties are 100% leased. Sheila Street provides attractive, long-term cash flow from an entrenched credit tenant. Stanford Court generates stable initial cash flow plus an opportunity to roll the below-market in-place rent to higher market rent upon lease expiration,” he said.
Supply Chain Bottlenecks Creating New “Logistical Hotspots”
2020 Top States for Doing Business Showcase Their Pro-Business Environments
2021 Gold & Silver Shovel Awards Recognize State and Local Economic Development Efforts
35th Annual Corporate Survey: Effects of Global Pandemic Reflected in Executives’ Site and Facility Plans
Latest Trends in the Industrial Real Estate Sector Here to Stay
Auto Industry Is Betting on Sustainability
2021 Auto/Aero Site Guide