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Rexford’s industrial buying binge continues with Valley acquisition

The REIT's latest purchase, a 122K sf property, was its 12th in region this year

Rexford's new property on Montague Street in Pacoima and Howard Schwimmer, co-chief executive
Rexford's new property on Montague Street in Pacoima and Howard Schwimmer, co-chief executive

Rexford Industrial Realty continues to feed its appetite for Los Angeles industrial properties.

The Westside-based real estate investment trust scooped up a 122,900-square-foot warehouse in the San Fernando Valley for $22.5 million, according to Real Capital Analytics. It’s the firm’s 12th purchase between L.A. County, Orange County, and the Inland Empire this year.

The warehouse is located at 12154 Montague Street in the neighborhood of Pacoima.

The deal appears to be another leaseback purchase for Rexford, this time with film and television lighting rental company Mole-Richardson, which is headquartered there. Mole-Richardson announced last week that it sold all of its assets to current CEO Michael Parker.

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In May, Rexford bought a 36-acre food distribution center in the city of Commerce in a leaseback deal worth $121 million with distributor Supervalu. Then last month the trust picked up an Irwindale warehouse for $12 million in a leaseback with Pepsi Bottling Group.  The company made the biggest purchase in the South Bay market in 13 years last year when it paid $210.5 million for a 55-acre industrial park outside Compton.

Mole-Richardson bought the Pacoima property in 2014 for $12.1 million from Oaktree and Cohen Asset Management. The property was built in 1974. Rexford’s purchase comes out to $183 per square foot.

Overall, the U.S. industrial market continues to be white-hot.

Vacancy rates nationwide hit a record low of 7.3 percent last year. The L.A. market is especially tight, which drove sales prices above $157 per square foot in the first quarter of 2018, a 17.3 increase year over year from 2017.

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