Rexford Buys LAX Rental Car Lot For $143M
Rexford Industrial Realty spent $143M to buy a rental car lot adjacent to Los Angeles International Airport.
The transaction was a three-year sale-leaseback "with 4% embedded annual rental rate increases," Rexford announced Wednesday.
The industrial-zoned property was owned by Hertz, public records show. It was being used by Hertz, Thrifty and Dollar car rentals, according to websites for all three companies.
Rexford plans to eventually redevelop the property into an industrial campus or make the necessary updates to use the site as industrial outdoor storage.
The company announced the rental lot acquisition along with another in the South Bay and one in San Diego.
In Torrance, Rexford scooped up a 2.5-acre property at 3520 Challenger St. that contains an existing light industrial office building leased long-term to one tenant. Here, Rexford anticipates revenue to grow as it has secured 3% annual rent increases. It paid $14.2M for the site.
Rexford pointed to CBRE data that found that the South Bay submarket had a 0.8% vacancy rate at the end of 2022.
Rexford also bought a 26.1-acre property at 9223 and 9323 Balboa Ave. and 4285 Ponderosa Ave. in San Diego for $200M. The property has existing industrial, research and development and office uses on it, but Rexford envisions "a prospective distribution hub serving greater San Diego County with immediate access to five major freeways."