Just weeks after closing a wave of six SoCal buys, Los Angeles-based Rexford Industrial Realty again extended its buying spree for several months.
The REIT purchased four more properties in May for a total of $164 million, the company announced Wednesday.
“Our year-to-date investments total $774 million,” Rexford co-executives Howard Schwimmer and Michael Frankel said in a statement, adding that SoCal’s infill was “the least industrial market supplied and the most demanded in the country”.
The four new purchases were spread across Southern California: the REIT purchased an approximately two-acre parcel of land in Compton for $10.8 million; a 200,000 square foot Class A building in Panorama City for $90.2 million; a 44,000 square foot Class A building in Ontario for $17.8 million; and approximately seven acres of industrial land in Fullerton for $45 million.
The purchase of Panorama City, at 14200-14220 Arminta Street, was $451 per square foot. Rexford was attracted to the space due to the area’s “incredibly low vacancy rate” and the building’s “high quality tenant”, a long-term tenant who has also made many improvements to the property. space, Michael Bogle, vice president of CBRE who represented Rexford on the deal, said in a statement. The tenant appears to be Mission Foods, the Texas-based tortilla brand with major operations in Southern California.
“It was a real flight-to-quality game,” Bogle added.
With its purchase of Fullerton in northern Orange County, Rexford intends to repurpose a recently closed hotel into a warehouse. The company’s purchase in Ontario — a transaction that amounted to $404 per square foot, for a one-year-old building with a single tenant — is part of a larger demand trend. industrial in the two counties of the Inland Empire, where a flurry of new warehouse construction has also caused civic backlash.
Rexford’s $164 million outlay was the latest wave in what has been a protracted buying spree: In April and early May, the REIT bought six properties for a total of $153 million, including a 35,000 square foot building near the Ontario airport for $14.2 million; an approximately six-acre storage site in Fontana for $26.2 million; and a 56,000 square foot building in Santa Fe Springs for $15.5 million.
In December, the REIT also spent $270 million to reclaim more than 650,000 square feet of industrial space around SoCal, and the company’s purchases earlier this year included a warehouse in Santa Clarita, an industrial building on along the LA River and an activity park in Long Beach.
Rexford now has more than 300 properties representing nearly 40 million square feet of rental space, according to a release. His recent purchases have been made with both cash on hand and the company’s line of credit; in the first quarter, the company reported net income of $43.9 million — a 76% jump from a year earlier that was due to “extraordinary tenant demand,” Frankel said during a call for results.