Rexford Industrial Buys $191M CA Portfolio

Los Angeles, CA-based Rexford Industrial Realty announced this week that it completed the acquisition of a nine-property industrial portfolio for a total purchase price of $191 million, or approximately $125 per square foot. Rexford Industrial purchased the portfolio from CT Realty Investors in a deal brokered by Darla Longo and Barbara Emmons of CBRE. According to a Seeking Alpha report, Rexford Industrial funded the deal with proceeds from its recent capital raise and exercise of a $100 million accordion on its $125M million unsecured term loan.

"We are pleased to complete the acquisition of this well-located, high-quality portfolio, which increases our owned square footage by over 12%," Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of Rexford Industrial, said in a press release. "The portfolio, which is 100% leased to twelve tenants, brings greater scale and operating efficiency in key infill submarkets and is expected to be accretive to our 2016 FFO/share operating metrics. We also look forward to executing on value-add opportunities to further enhance the portfolio's cash flow over time to maximize value for our shareholders."

Addresses for properties within the portfolio have not yet been made available, but are notably located in Orange County, Inland Empire West, Central San Diego and Los Angeles-San Gabriel Valley, and include 1,530,814 net rentable square feet on 79.8 acres. Two of the buildings were constructed in 2015 and most of the other assets were renovated in the past three years.

For more news and information visit Blumberg Partners.

Rexford Industrial on SoCal Market

Kelsi Maree Borland of GlobeSt.com conducted an exclusive interview with Howard Schwimmer and Michael Frankel, the co-CEOs of Rexford Industrial, to discuss their firm's recent transactions in Southern California and their current take on the industrial market. Just this month Rexford announced the acquisition of two industrial properties for $15.4 million, another two for $29 million, along with first quarter financials which reported the Q1 acquisition of four industrial properties, totaling approximately 432,000 square feet, for an aggregate cost of $52.4 million. An excerpt of the Q&A follows:

GlobeSt.com: Are there markets within Southern California to which you are particularly attracted?

Frankel and Schwimmer: Well, 70% of our portfolio is located in L.A. and Orange County, but we are looking for opportunities in all of the markets that I mentioned. We do have a higher concentration in the San Fernando Valley, where we have close to 3 million square feet of our portfolio. That market has been a good performing market for us.

GlobeSt.com: As you mentioned, this is a very competitive industrial market and you are focusing on high barrier to entry areas. How are you finding and winning deals?

Frankel and Schwimmer: Today, a lot of the deals that we do have a value-add component to them, and a lot of times we see things that a lot of other buyers don’t. We have three licensed contractors on our staff, so we are always looking at how to create value, and in doing so we are often able to secure the deal ahead of other buyers because we are able to create stronger cash flows.

GlobeSt.com: Where do you see the Southern California market over the rest of the year?

Frankel and Schwimmer: I think it is going to continue to be strong from a fundamental standpoint, with high occupancy and growing rental rates and property values. It is a huge market and it is very fragmented in terms of ownership, so there is always a lot of opportunity in terms of buying assets, whether they are core deals or value-add. We are excited about the market, and we think there is still a lot of opportunity on the rental side in terms of the product that we focus on, and our ability to grow rents in the product that we are buying.

For more news and information visit Blumberg Partners.

Rexford Buys 9 Building Industrial Portfolio for $89M

Rexford Industrial, the Southern California-based industrial real estate firm, announced this week that it had purchased a nine-property industrial portfolio for $88.5 million, or approximately $108 per square foot, from Westcore Properties. The transaction was financed in part by a $48.5 million loan from JPMorgan Chase & Co., according to a Los Angeles Business Journal article. The remainder of the purchase price was financed by an existing line of credit.

"We are pleased to announce the acquisition of this high quality portfolio comprised of nine industrial properties in class "A" locations within our target Southern California infill markets," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of Rexford Industrial Realty, Inc. "The properties are strategically located within Los Angeles County, Orange County and San Diego County with convenient access to key regional, interstate, rail, and airport infrastructure to support local and regional distribution. The portfolio is currently 87% occupied. We plan to execute on a range of opportunities to drive occupancy while enhancing functionality, cash flow and value through strategic repositioning."

Eight of the nine portfolio properties, located across Southern California, are 96% leased in aggregate. The remaining property is 40% leased, with an immediate value-add opportunity to reposition the property in order to deliver a high-demand product capable of achieving higher rents. Included in the portfolio are a 60,800-square-foot building at 9855 Distribution Ave.; a 47,666-square-foot building at 9755 Distribution Ave. in the Miramar area; and three buildings totaling 230,250 square feet at 9340, 9404 and 9455 Cabot Drive in the Miramar area.

For more news and information visit Blumberg Capital Partners.

Rexford Industrial Buys 2 SoCal Properties for $24.9M

Rexford Industrial Realty, Inc., an REIT focused on owning and operating industrial properties in Southern California in-fill markets, announced this week that it had purchased two industrial properties totaling 218,768 square feet for approximately $24.9 million. The purchase was made with Rexford’s credit facility as well as $4.35 million in proceeds from the sale of another Southern California industrial property.

"We are pleased to complete the acquisition of these two single tenant industrial buildings within our primary target in-fill markets, bringing total acquisitions thus far in 2014 to more than $54 million," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of Rexford Industrial. "Both properties are modern, highly-functional industrial facilities that are 100% leased to entrenched corporate tenants, and are expected to be immediately accretive to cash flow. In addition, the sale of the Madera office building provided capital for recycling and demonstrates our ability to execute more complex and value-add transactions. We continue to review a strong pipeline of potential opportunities within our target in-fill markets as we grow our portfolio and enhance stockholder value."

The two properties include:

- 24105 Frampton Avenue, a 47,903 square foot industrial building situated on 2.07 acres, for $3.93 million, or $84 per square foot, and

- 1700 Saturn Way, a 170,865 square foot industrial building, for $21.1 million, or $123 per square foot.

For more news and information visit Blumberg Capital Partners.