REXFORD INDUSTRIAL ACQUIRES THREE INDUSTRIAL PROPERTIES TOTALING $33 MILLION
Company on Track to Invest $375 Million in Acquisitions This Year
Los Angeles, CA, April 18, 2007
Rexford Industrial, LLC, Southern California’s leading, privately-held industrial real estate firm, has acquired three industrial properties in California and Nevada with an aggregate value of more than $33 million, announced Howard Schwimmer, managing member with the firm. The three purchases are in line with the company’s aggressive plan to purchase $375 million dollars of industrial properties, representing approximately three million more square feet in 2007.
“Each of these properties has its own unique investment potential underscoring Rexford’s ability to capture diverse opportunities and create value in all sectors of the industrial market – from value-added to stabilized core assets,” commented Mr. Schwimmer.
Las Vegas
Rexford expanded its portfolio of Class A industrial assets with the purchase of Silverado Business Park, a 165,000-square-foot multi-tenant industrial park located at 4114-4216 North Pecos Road in Las Vegas. Acquired from Silverado Eagle Industrial Park LLC for $18.9 million, the project is leased to high-credit tenants including Scholastic Books, Sherwin Williams and Mothers Cake & Cookie Co. Bill Palmer, Roman Benvenutti and Roman Rosario of The Palmer Team represented both Rexford and the seller in the transaction.
“The project represented an excellent opportunity to acquire a Class A industrial park in a premier location in North Las Vegas - one of the only remaining growth corridors in the Las Vegas area,” said Lee Segal, executive vice president of acquisitions with Rexford. North Las Vegas is quickly being built-out, with vacancies below five percent and little-to-no land available for new development.
Rancho Cucamonga
In Rancho Cucamonga, Calif., Rexford acquired a 62,677-square-foot multi-tenant business park located at 9375 Archibald Avenue from 9375 Associates, LP and Diversified Partners, Inc. Both the seller and Rexford were represented by Dennis Vacarro and Nick Coo of Faris Lee Investments. The site contains four multi-tenant concrete block industrial buildings totaling 33,000 rentable square feet and three two-story wood frame office buildings totaling 29,677 square feet on two land parcels totaling 4.99 acres. The transaction is valued at approximately $7.3 million.
“Rexford was able to secure this well-located infill property at below-replacement cost, making it a prime opportunity for value creation,” said Mr. Schwimmer. Rexford’s business plan for the property includes cosmetic upgrades to the office structures, as well as general clean up and landscaping upgrades, selectively replacing tenancies and moving rents to market levels.
South Bay
Demonstrating the firm’s ability to close transactions in record time, Rexford acquired a group of buildings in the much-desired South Bay submarket for $7.5 million from private seller Anthony Stauffer and The Sebits Living Trust U.D.T. “In this case, Rexford opened a six-day escrow five days after learning that the property was available. The escrow and transaction closed within six days,” said Michael Frankel, chief financial officer and principal with Rexford.
Totaling approximately 70,000 square feet, the buildings are located at 2708 Seaboard & 6010 Paramount Boulevard in Long Beach, Calif.; and 639 and 641 Walnut Street in Carson, Calif. Together, they present opportunities for value-creation and rent growth, including condominium sales or individual building sales. Brokers Jeff Smart of Grubb & Ellis and Michael Moore & Scott Schumacher of CB Richard Ellis represented both Rexford and the seller in the transaction.
About Rexford Industrial
Rexford Industrial LLC is a leading industrial real estate firm in Southern California. With deep capitalization and streamlined processes, Rexford Industrial invests in growth opportunities in all classes and every category of industrial properties. Rexford offers brokers unique investment incentives and has built a powerful network of loyal relationships in the industry. With a current portfolio of 4.7 million square feet valued at more than $500 million, Rexford Industrial’s aggressive growth strategy is to purchase $375 million dollars of industrial properties, representing approximately three million square feet in 2007. The firm is based in Los Angeles with offices in Orange County and San Diego.