The most aggressive buyer of industrial real estate in Southern California has gobbled up more properties, including a massive development in the Inland Empire.
Los Angeles real estate investment trust Rexford Industrial Realty spent roughly $660 million on seven industrial properties throughout greater L.A., Ventura County and the Inland Empire, according to a statement by the company.
Rexford said it has another $500 million in deals in the pipeline and has spent a whopping $1.6 billion on industrial properties in 2022. Last year, Rexford spent $1.9 billion on industrial property in Southern California.
Rexford focuses its investments on Southern California, the nation's most desirable industrial market because of its proximity to the ports of Long Beach and Los Angeles, the busiest in the United States.
The company has spent roughly $3.2 billion on industrial property in greater Los Angeles in the past five years, far outpacing its nearest competitor, Blackstone, which spent roughly $1.2 billion in that time, according to CoStar data. In total, Rexford owns roughly 335 properties totaling about 40.8 million square feet.
Industrial demand continues to climb in greater Los Angeles after briefly slowing due to interest rate hikes. The L.A. market's average vacancy rate is 2%, down nearly 15% year over year, according to CoStar data. The market's average annual asking rent is $17.26 per square foot, up from $15.15 per square foot a year ago.
Rexford's transactions in June and July include:
- The purchase of the roughly 1.1 million-square-foot, six-building complex at 6251 Archibald Ave. for $470 million, or $445 per square foot. The Inland Empire development sits on nearly 50 acres and is 71% leased.
- The $47.5 million, or $382 per square foot, deal for the roughly 124,000-square-foot 4325 Etiwanda Ave. The Class A Inland Empire property sits on 6 acres.
- The roughly 187,000-square-foot 3935-3949 Heritage Oak Court in Simi Valley for $56.4 million, or $302 per square foot.
- The acquisition of the 3-acre 3547-3555 Voyager St. property in Torrance for nearly $21 million, or $162 per land square foot. Rexford plans to redevelop the existing roughly 60,000-square-foot industrial complex but did not disclose details about the planned project.
- A 1-acre site at 400 W. Rosecrans Ave. in Gardena, purchased for $8.5 million, or $193 per land square foot. The property has a vacant 28,000-square-foot building.
- The roughly 34,500-square-foot 620 E. Anaheim St. in Los Angeles, acquired for $17.1 million, or $495 per square foot. The building sits on roughly 2 acres.
- The deal for the 5.5-acre property at 6996 Bandini Blvd. and 7044 Bandini Blvd. in Commerce for $40.5 million, or about $170 per land square foot. Rexford is considering redeveloping the property.