CRE News Today

Rexford REIT Buys Blackstone

Warehouse Portfolio for $1B

Rexford Industrial Realty, a Los Angeles-based real estate investment trust, has significantly expanded its presence in Southern California's industrial market through a substantial $1 billion deal with Blackstone, the largest commercial real estate company in the U.S. This deal entails acquiring 48 properties totaling 3 million square feet of industrial space in L.A. and Orange counties, with an impressive 98 percent occupancy rate and an average cost of approximately $332 per square foot, initially reported by Bloomberg. Howard Schwimmer and Michael Frankel, co-CEOs of Rexford, underscored the strategic value of these investments, emphasizing their potential to drive cash flow growth, enhance operating margins, and create long-term value. Meanwhile, David Levine, co-head of Americas acquisitions for Blackstone Real Estate, highlighted the robust demand for high-quality assets in Southern California, affirming Blackstone's continued commitment to expansion in the industrial real estate sector amidst a global backdrop of logistics being a key focus for the company, which boasts a warehouse portfolio worth $175 billion worldwide.

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Source: Commercial Observer