Rexford Industrial Realty, Inc. (NYSE: REXR) confirmed that it has bought four industrial properties for an aggregate buying price of $163.8 million. Rexford team’s ability to utilize its localized competitive advantage and value-add experience within infill Southern California, the nation’s lowest-supply, and highest-demand industrial market, is reflected in these investments, which were purchased through off-market transactions.
Rexford investments so far have totaled $774 million, with over 85 percent coming from off-market or hardly advertised transactions. The company is well-positioned with a low-leverage balance sheet to produce greater long-term shareholder value, with over $600 million in further investments under contract or accepted offer, as well as a wide range of value-add internal growth activities underway.
The Company paid $10.8 million, or $110 per land square foot, in off-market transactions in May and June for 2020 South Central Avenue, Compton, in the LA, South Bay submarket. A completely occupied 30,233 square foot single-tenant facility on the 2.3-acre industrial-zoned property site is leased for a rent anticipated to be roughly 60% below current market rates.
In addition, the Company paid $90.2 million, or $451 per square foot, in off-market transactions in May and June for 14200-14220 Arminta Street, Panorama City, in the LA, San Fernando Valley submarket. The 200,000 square foot Class-A property, which sits on 8.5 acres, is leased long-term to a credit tenant at a rent that is expected to be around 35% lower than the current market rate.
Rexford also paid $17.8 million, or $404 per square foot, for 1172 Holt Boulevard in Ontario, which is part of the Inland Empire, West submarket. The company has also bought 1500 South Raymond Avenue, Fullerton, CA, for $45.0 million, or $143 per land square foot, in the North Orange County submarket. Cash on hand, the Company’s line of credit, and units in the Company’s operating partnership were used to pay the transactions.