LA-based REIT Rexford Reaches $1.2 Billion in Industrial Property Acquisitions in 2023

Rexford Industrial Realty, Inc. (REXR) announced that it has acquired three industrial properties in Southern California for a total of $46.2 million. The acquisitions were made through off-market transactions and were funded with cash on hand.

The acquisitions: The first property is located at 2500 Thompson Street in Long Beach. The property is a 6.1-acre site that comprises three buildings totaling 174,691 square feet. The buildings are leased to a single tenant at rents that are estimated to be 40% below the current market rates.

The second property is located at 422 Rosecrans Avenue in Gardena. The property is a 0.4-acre site that is adjacent to a redevelopment site that REXR is currently working on. The acquisition of this property completes the assemblage of 6.3 total acres of land in the high-demand South Bay submarket. The redevelopment will feature a cross-dock building covering 57,000 square feet and a large, secured yard for container storage. 

The third property is located at 14650 Hoover Street in Westminster. The property is a Class A, single-tenant building spanning 59,679 square feet and is situated on 2.9 acres of land.

Future projects: In addition to these acquisitions, REXR also announced that it has pre-leased its property at 17311 Nichols Lane in the OC - West submarket. The property is being repositioned into a highly-functional industrial property encompassing 114,912 square feet. 

The reason: The demand for industrial real estate space is escalating due to the growth in industries and an e-commerce boom. Companies are also working to improve supply-chain efficiencies amid the rising demand for logistics infrastructure and efficient distribution networks. This has led to a need for more industrial real estate space.

The vision: REXR's recent acquisitions are a positive sign for the company. They demonstrate the company's ability to capitalize on the strong demand for industrial real estate space and its commitment to growth.

Howard Schwimmer and Michael Frankel, co-chief executive officers of REXR, said, "Rexford Industrial's investment activity demonstrates the company's unique access to well-located, off-market opportunities and ability to capitalize upon dynamic market conditions to drive favorable cash flow and net asset value growth. The company is also favorably situated with substantial embedded internal growth and a low leverage balance sheet, positioning the company to deliver long-term value creation for shareholders."