Rexford Industrial Realty, a REIT focused on owning and operating industrial properties located in Southern California infill markets, bought an industrial property for approximately $17.1 million. The acquisition was funded with cash on hand.
"This acquisition is another representation of our ability to source and close off-market, value-add investment opportunities in the supply constrained infill Southern California industrial market," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company.
"This property provides dual opportunities to unlock value through repositioning an existing building and development on excess land. As we progress through 2017 and beyond, we remain focused on executing both our internal and external growth strategies to drive cash flow and to create long term value for our shareholders."
Rexford acquired 28901-03 N Avenue Paine, located within the Los Angeles San Fernando Valley submarket, for approximately $17.1 million, or approximately $153 per square foot, inclusive of excess land.
The vacant, single tenant property contains 111,346 square feet on 5.64 acres, plus an adjacent 5.75-acre land parcel. The Company plans to remove user-specific improvements and reposition the existing building into Class A industrial warehouse/distribution space.
Additionally, an approximately 114,000 square foot new four-tenant industrial building is planned for construction on the excess land parcel. According to CBRE, the vacancy rate in the 173 million square foot San Fernando Valley submarket was 1.2% at the end of the fourth quarter, 2016.
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 137 properties with approximately 15.1 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet.