Rexford Industrial CEO Sees This Investment 15% Below Rental Market

Rexford Industrial's co-CEO Howard Schwimmer (with co-CEO Michael Frankel) sees rents at Kearney Mesa Business Park about 15% off peak market rents and rising quickly. And that's the investment key for this value-add buy, he says. Rexford purchased the 13-building, 188k SF industrial portfolio off Convoy Court recently for $32.3M, or $172/SF in an off-market transaction. The park is 98% occupied with little immediate rollover. But when those leases come due, Howard sees a rent rate boost. Rexford is no stranger to San Diego's industrial market, with about 1.4M SF in its portfolio in light industrial and flex space. After having spent $400M this past year, Howard says his firm is still shopping – including for more possible San Diego properties.

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