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Rexford Industrial nears $1B in SoCal acquisitions this year

Its latest purchase of a 3-property portfolio in the LA area includes plans to build another warehouse

From left: Rexford co-CEO Michael Frankel, 12752-12822 Monarch St. in Garden Grove, 508 East E St. in Wilmington and Rexford co-CEO Howard Schwimmer (Credit: Google Maps)
From left: Rexford co-CEO Michael Frankel, 12752-12822 Monarch St. in Garden Grove, 508 East E St. in Wilmington and Rexford co-CEO Howard Schwimmer (Credit: Google Maps)

Already one of the most active industrial buyers in the Los Angeles area, Rexford Industrial Realty paid $56.1 million for two warehouses and a property where it has development plans.

This year alone, Rexford has acquired more than $850 million of industrial properties in Southern California.

As part of its latest purchase, the real estate investment trust paid $34 million for a roughly 275,000-square-foot building in Garden Grove, the company announced.

The property, at 12752-12822 Monarch St., is on 11.1 acres and 93 percent leased. Industrial vacancy rate in that Orange County submarket hovered around 2 percent at the end of the third quarter, according to CBRE.

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Sawtelle-based Rexford also paid $15 million for a 57,522-square-foot warehouse near the Port of Los Angeles. The property is located at 508 East E St. in Wilmington.

And with its $7.2 million purchase of a property in Azusa, Rexford will build a 97,000-square-foot warehouse. The property is located at 415 S. Motor Ave. in the San Gabriel Valley.

Last month, the firm paid $41.3 million for a 92,000-square-property in Commerce. The seller was industrial giant Prologis.

The latest deal comes at a time when L.A. County’s red-hot industrial market is showing some signs of slowing down, though not for lack of demand. Investment sales in the sector are on pace for a record year, with over $7.4 billion worth of industrial properties trading in L.A. and neighboring markets this year, according to CBRE.

But a lack of supply may slow that activity, according to a report from NAI Capital, which indicated that low availability and high pricing may be discouraging leasing.

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