Blackstone Closes $1B in Industrial Portfolio Sales

The Irwindale, Calif., facility that Rexford Industrial acquired last October for $120 million. *Image courtesy of CommercialEdge*

Rexford Industrial Realty has expanded its industrial inventory with the purchase of a combined portfolio totaling 3 million square feet for $1 billion or $332 per square foot.

Blackstone Real Estate sold the 48 properties in separate transactions, which included Blackstone Property Partners as well as Blackstone Real Estate Partners and Blackstone Real Estate Income Trust.

The combined portfolio is 98 percent leased, with 99 percent of the property square footage situated within core and infill submarkets in Los Angeles and Orange counties.

Rexford Industrial funded these investments using proceeds from their recent exchangeable senior note offerings and cash on hand. In aggregate, the investments will produce a weighted average initial unlevered cash yield of 4.7 percent and an anticipated stabilized unlevered cash yield of 5.6 percent.

Rexford’s investment pipeline currently encompasses around $300 million in investments under contract or accepted offer. Their total investments year-to-date, completed or still in the pipeline, amount to $1.4 billion, with a weighted average initial unlevered cash yield of 5.0 percent and an anticipated stabilized unlevered cash yield of 5.7 percent.

Rexford’s booming industrial inventory

The REIT’s inventory currently consists of 422 industrial properties totaling 49.1 million rentable square feet occupied. The company focuses on investing in, managing and redeveloping industrial properties throughout infill Southern California.

In October, the firm acquired a nearly 1 million-square-foot industrial property in Greater Los Angeles for $120 million. The Irwindale, Calif., facility was fully leased.

A few months earlier, Rexford purchased another Los Angeles building for $210 million. San Diego County Employees Retirement Association sold the 595,304-square-foot asset.