Rexford Industrial Realty has purchased 3 million sq. ft of commercial properties in Southern California from Blackstone in a whopping $1 billion deal, including nearly 7 % of sq. footage to its portfolio.
Rexford acquired 48 properties, that are scattered throughout Los Angeles and Orange counties, the agency introduced on Thursday. The sale got here out to round $332 per sq. foot on common.
Rexford used proceeds from company debt gross sales and money readily available for the acquisition, somewhat than any form of mortgage collateralized by the properties.
The portfolio is 98 % leased, although Rexford didn’t disclose the addresses.
Blackstone offered the properties by means of quite a lot of completely different ventures, together with Blackstone Property Companions, Blackstone Actual Property Companions and Blackstone Actual Property Earnings Belief.
In a press release, David Levine, who collectively runs acquisitions within the Americas for Blackstone’s actual property group, referred to as the deal an “wonderful final result” for buyers.
Rexford has reaped the advantages of Southern California’s tight industrial market over the previous few years, beginning in 2021, when emptiness throughout many Southern California industrial markets dropped beneath 1 %, as customers pivoted to creating extra on-line purchases and corporations wanted further area to retailer items in the course of the pandemic.
The REIT has spent the final a number of years in “purchase” mode. The agency spent $1.5 billion to accumulate property in 2023, down from $2.4 billion in 2022.
On the finish of 2023, Rexford reported $797 million in complete revenues, up 26 % from the 12 months prior, and $249 million in web revenue — up 41 % from the top of 2022, in response to monetary reviews.
