Rexford Industrial Realty pays $210m for L.A. industrial property
Rexford Industrial Realty has purchased an industrial property for a purchase price of $210 million.
The company acquired 9400 Santa Fe Springs Road, Santa Fe Springs, located in the L.A.–Mid-Counties submarket for $210 million, or $353 per square foot. Situated on 22.4 acres and 100 percent leased to two tenants, the 595,304-square-foot building delivers a high degree of functionality within a submarket demonstrating an extreme scarcity of similar size and quality available product. The investment generates an initial unlevered cash yield of 5 percent, projected to grow to an unlevered stabilized cash yield on total investment of 6.2 percent through re-leasing at market rents and contractual annual rent increases of 4 percent. According to CBRE, the vacancy rate in the 105-million-square-foot L.A.– Mid-Counties submarket was 1 percent at the end of the second quarter 2023.
The acquisition was funded using proceeds from forward equity settlements, of which the co