Rexford Reveals SD Buy Strategy
Rexford Industrial has spent more than $50M on various San Diego warehouses since December, according to an SEC filing. And that's while the industrial market in the area remains slow to recover. Rexford reveals details on its recent area purchases: The firm spent $18.5M using funds from its unsecured revolving credit facility to buy Miramar Commerce Center, a five-building, 112,500 SF flex industrial project on 10 acres off Activity Road. Rexford also purchased the 188k SF Kearny Mesa Industrial Park off Convoy Court for $32.3M in December. The 13-building property (here) on 12 acres was also purchased with Rexford's credit facility.
Rexford is buying into a market that, by its own admission, is tougher than other parts of California. Rexford's SD portfolio is 86.3% leased as of December, compared to LA (at nearly 91%) and Orange County (at 92%). But Rexford offers its rationale for the purchase of the properties, including Kearny Mesa (here): “A key component of our growth strategy is to acquire distressed, off-market and lightly marketed properties that are often operating at below-market occupancy at the time of acquisition,” Rexford execs write in SEC docs.The firm has plans to redevelop and reposition several of the properties.