Rexford Industrial Realty’s LA and Inland Empire Acquisitions Include Redevelopment Plans
A Los Angeles real estate investment trust has tacked on more industrial properties to its growing portfolio as the sector remains in demand amid a lack of inventory.
Rexford Industrial Realty spent $126 million on five industrial properties in Los Angeles and the Inland Empire in October and November, according to a statement from the company. It’s the latest large investment in greater Los Angeles industrial property as e-commerce drives demand for the sector, which has seen low vacancy rates and rising rents.
Rexford’s latest purchases include:
- 21515 Western Ave. in Torrance, which sold for $19 million. The developer plans to redevelop the roughly 56,000-square-foot retail building on 4 acres into an 85,520-square-foot Class A warehouse and distribution facility.
- 12027 Greenstone Ave. in Santa Fe Springs, an outdoor storage site that sold for $8.1 million.
- 6027 Eastern Ave. in Commerce, which sold for $23.3 million. The developer plans to redevelop the 4-acre site into two industrial buildings totaling 92,800 square feet.
- 340-344 Bonnie Circle in Corona, a 98,000-square-foot industrial building that sold for $27 million, or around $276 per square foot.
- 14100 Vine Place in Cerritos, a roughly 120,000-square-foot building that sold for $48.5 million, or about $407 per square foot.
In November, Rexford also sold roughly 32,000 square feet of industrial property at 2670-2674 Walnut St. and 89-91 San Gabriel Blvd. in Pasadena for $11.7 million, or about $370 per square foot.
Los Angeles is one of the most in-demand regions for industrial real estate in the U.S. due to the area’s population growth and proximity to the nation’s busiest ports. The average annual rent in the market is $15.38 per square foot, well above the national average of $9.59 per square foot, according to CoStar data. Meanwhile, the market’s vacancy rate is a minuscule 1.8%, well below the national average of 4.5%.
The market demand is driven in large part by e-commerce spending, which is projected to continue to rise. That may increase demand by 1 billion square feet of industrial space nationally in 2025, according to a third-quarter JLL report on the state of the industrial market.
Rexford is an active Southern California industrial buyer. In the third quarter, the company bought 140 acres of outdoor storage sites and 13 properties adding up to 2.1 million square feet, according to a statement. In total, Rexford owns roughly 280 properties with 35 million square feet of space.
Author Credit: CoStar
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