Rexford Industrial Realty announced the acquisition of two industrial properties comprising an aggregate 421,824 square feet and one 80.2-acre industrial storage site for an aggregate purchase price of $285.6 million.
The assets include:
5772 Jurupa Street, located in Ontario, Calif., within the Inland Empire – West submarket for $54.0 million or $150 per square foot. The 360,000-square-foot, 30-foot clear building on 16.8 acres of land is fully leased at rent estimated to be approximately 40 percent below market. Upon lease expiration, the company intends to drive cash flow growth through the renewal of the existing tenant at a higher market rent or through the execution of value-add improvements and re-tenanting. The initial unlevered 4.3 percent cash yield is projected to grow to a stabilized yield on total investment of 8.2 percent. According to CBRE, the vacancy rate in the 316 million square-foot Inland Empire – West submarket was 1.0 percent at the end
