Rexford Industrial Realty is continuing its Southern California sell-off with the disposition of an industrial property in Orange County.
West Los Angeles-based Rexford sold the 136,200-square-foot facility at 1500 South Raymond Avenue in Fullerton to industrial machinery manufacturer Terra Universal for $50 million, or $367 per square foot, L.A. Business First reported.
Cushman & Wakefield’s Kevin Turner and Jiselle Roberson represented Terra Universal in the transaction, while Cushman & Wakefield’s Randy Ellison, Brett Lockwood, Kyle McGillen and Andrew Ryan represented Rexford.
Terra Universal’s headquarters are less than a mile away from the site at 800 South Raymond Avenue. The company plans to use the facility for light manufacturing and distribution, according to Cushman & Wakefield. Its current headquarters include two leased properties spanning a total of 180,000 square feet, and the company plans to consolidate operations at the new site.
The newly built facility was completed by Rexford last year. Before hosting the existing industrial building, the site was home to The Hotel Fullerton. Terra Universal was attracted to the 1500 South Raymond property because of its “scale, quality and location” and the option to exercise “greater long-term control over their occupancy costs,” Turner said.
Over the summer, Rexford Industrial committed to selling $2 billion in real estate as part of a broader portfolio realignment. That included the $1.2 billion portfolio sale of 22 industrial properties to an affiliate of EQT Real Estate in August. The following month, the company announced $1.5 billion in sales.
“Acquisitions are not a compelling use of capital today,” Rexford CEO Laura Clark told L.A. Business First earlier this year. “[Rexford is] selling assets that potentially have risk, pressure on future cash flow growth or aren’t aligned with our strategy moving forward.”
The priciest industrial sale in Orange County last quarter was Robinson Pharma’s purchase of the 263,990-square-foot Irvine Business Complex from Starpointe Ventures for $75 million, or $284 per square foot, according to Kidder Mathews’ latest market report.
Rexford was the seller in the second-highest deal of the third quarter, unloading the 92,400-square-foot Commerce Center at Buena Park to an undisclosed buyer for $28.1 million, or $304 per square foot.
— Chris Malone Méndez
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