Box Yard Sells to Rexford Industrial for $94M
The Box Yard, a four-building creative industrial business park totaling 261,528 square feet in Los Angeles’ Arts District, was recently acquired by Rexford Industrial for $94 million. The Box Yard is located at 2425, 2445, 2460 and 2535 E. 12th St. and was 94 percent leased at the time of sale. Five new leases have been signed at the property in the last six months.
Newmark’s Andrew Briner, Bret Hardy, Jim Linn, Kevin Shannon, Scott Schumacher and Laura Stumm represented the seller, Bridge Industrial.
“Investors continue to drive exceptional demand for highly functional industrial assets in gateway markets,” said Briner. “Furthermore, the opportunity for investors to achieve outsized risk adjusted returns through a targeted lease-up strategy at The Box Yard made this acquisition opportunity unique, resulting in market-leading pricing for our seller.”
The fully gated and secured site recently underwent significant interior and exterior renovations, designed by Gensler.
“The scale, location and class-A refurbishment of this project by Bridge Industrial attracted investors across the U.S.,” says Linn. “Rexford Industrial will surely benefit by outsized future rental growth from tenants seeking functional space in a park-like environment that is proximate to Downtown LA and the coveted Arts and Fashion Districts.”
Los Angeles remains one of the most resilient industrial markets in the country, servicing a consumer population of nearly 18 million throughout the five-county metropolitan area. The central industrial market poses strong market fundamentals with 76 consecutive quarters of sub-3 percent vacancy and a current vacancy rate of 1.5 percent, according to Newmark research.