Los Angeles-based Rexford Industrial Realty Inc. added to the more than 800,000 square feet of industrial properties it owns in San Diego County, according to the firm's website.
The real estate investment trust acquired the 13-building, 187,763-square-foot, 12-acre Kearny Mesa Business Park for $32.8 million.
The property is located at 6970-7170 and 7310-7374 Convoy Court.
The buildings, which were purchased from LBA Realty Fund III-Company IX LLC, range from 8,400 to 33,000 square feet.
Consisting of 57 rental spaces, the complex is currently 98 percent occupied.
Completed on Dec. 31, the acquisition was funded utilizing the company's credit facility, according to Rexford (NYSE: REXR).
"The project's high-quality, diverse tenant base serves regional distribution, warehousing and manufacturing," Rexford said.
The REIT said it plans upgrades to increase the property's marketability, drive occupancy and facilitate roll-up of below-market rents to market rates on renewal and re-leasing.
“Our acquisition of the Kearny Mesa Business Park further validates Rexford Industrial's ability to utilize its proprietary sourcing capabilities to source off-market acquisitions in supply-constrained submarkets such as Kearny Mesa,” said Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford. “We purchased this high-quality, multi-tenant portfolio from a private seller motivated to complete a transaction by year end. We plan to harvest favorable cash flow in the immediate term and to roll below-market rents to market upon renewal or re-leasing.”
Among other Rexford holdings in San Diego County are a 121,892-square-foot "broken" industrial condominium property at 929-951 Poinsettia Ave. in Vista and a 151,000-square-foot industrial/flex building at 6200-6300 Yarrow Drive in Carlsbad, and a 81,233-square-foot two-building multi-tenant industrial property on an adjacent parcel at 6231-6241 Yarrow Drive.
Other properties owned by the company are in San Diego's Sorrento Valley, Poway, Carlsbad and National City, according to Rexford's web site.
In June of last year, Rexford paid about $90 million to acquire an 823,000-square-foot portfolio of properties from San Diego-based Westcore Properties.
While most of these properties were elsewhere, they included more than 230,000 square feet of buildings on Distribution Avenue and Cabot Drive, both in the Miramar area.
For the third quarter ended Sept. 30, Rexford report its San Diego-area stabilized portfolio was 79.4 percent occupied.
This occupancy rate was lower than its properties in Orange, Los Angeles, San Bernardino and Ventura counties, the company said.
The Kearny Mesa Business Park acquisition brings Rexford's overall 2014 acquisition volume to 3,738,000 square feet, consisting of 36 industrial properties located in infill Southern California sites for a total of nearly $400 million.
Rexford focused on owning and operating industrial properties in Southern California infill markets.
The company owns interests in 99 properties, with 10.3 million rentable square feet and manages an additional 20 properties with 1.2 million rentable square feet.
Seller LBA has also been a major player in the San Diego commercial real estate picture.
An LBA Realty entity was ready in Carlsbad in 2011 when Callaway Golf Co. (NYSE: ELY) decided to sell 263,240 square feet of Carlsbad industrial buildings, in anticipation of moving its manufacturing operations to Monterrey, Mexico.
LBA paid $18.5 million for Callaway properties at 2285 Rutherford Road (133,000 square feet), 5960 Pascal Court (80,620 square feet) and 5928 Pascal Court (39,620 square feet).
In addition, LBA owns the 158,454-square-foot Brandywine Industrial Center at 1669 and 1675 Brandywine Ave., in Chula Vista, it acquired for $13.7 million in 2005.
About two years ago an LBA Realty Fund unit sold the 166,900-square-foot Lightwave Corporate Center within the San Diego Spectrum for $52.5 million to GI Partners of Menlo Park. The building was part of the original General Dynamics (NYSE: GD) campus in Kearny Mesa.
Early in 2014, another LBA Realty entity sold an 81,712-square-foot office building on Armada Drive in Carlsbad to Phoenix-based Cole Real Estate Investments.