Industrial real estate investment trust Rexford Industrial Realty has sold two vacant buildings in Oceanside, California, for $14.7 million as part of a broader strategy to divest assets and repurchase shares amid strong operational performance.
The transaction involved 1332 & 1336 Rocky Point Drive in the San Diego – North County submarket, comprising 51,000 square feet across two single-tenant industrial buildings. At $288 per square foot, the sale generated an unlevered internal rate of return of 14.2 percent for the Los Angeles-based REIT.
The Oceanside disposal represents part of a wider third-quarter disposition strategy for Rexford, which sold two properties totaling 76,000 square feet for $32 million. The company also divested 8542 Slauson Avenue in Pico Rivera for $17.3 million, achieving a combined weighted average unlevered IRR of 12.4 percent across both transactions.
Year-to-date through August 31, Rexford has disposed of five properties totaling 412,000 square feet for $166 million, generating a weighted average unlevered IRR of 12.0 percent. The company reports approximately $90 million of additional dispositions under contract or accepted offer, though these remain subject to due diligence and closing conditions.
The disposition activity comes as Rexford demonstrates robust operational momentum across its Southern California portfolio. The REIT executed 77 new and renewal leases comprising 1.9 million square feet in July and August alone—exceeding the prior full quarter’s volume and bringing year-to-date leasing to 6.0 million square feet.
Same Property Portfolio occupancy reached 96.6 percent as of August 31, representing a 50-basis-point increase from the second quarter. Comparable rental rates on new and renewal leases increased 30 percent on a net effective basis and 15 percent on a cash basis during the third quarter to date.
“We are pleased with the strength of our third quarter operating results to date, which reinforce the positive momentum we are driving across our portfolio,” said Co-Chief Executive Officers Michael Frankel and Howard Schwimmer. “Leasing volumes in July and August alone exceeded the prior full quarter, reflecting improving fundamentals in our markets and the successful lease-up of over 400,000 square feet of repositioned and redeveloped assets, with leasing spreads persisting at healthy double-digit levels.”
The proceeds from dispositions have enabled Rexford to accelerate share repurchases as part of what management describes as “accretive capital recycling.” During July and August, the company repurchased 2.7 million shares for $100 million at a weighted average price of $37.08 per share.
On August 29, Rexford’s board authorized a new $500 million share repurchase program, superseding a prior $300 million authorization. The program allows the company to purchase shares through open market transactions, private negotiations, or other permissible methods without fixed timing or volume requirements.
The REIT also strengthened its balance sheet by repaying a $100 million unsecured senior note bearing 4.29 percent interest using cash on hand.
“Our opportunistic dispositions year to date positioned us to meaningfully accelerate share repurchases, in line with our commitment to delivering value through accretive capital recycling,” the co-CEOs noted.
As of August 31, Rexford Industrial’s portfolio comprised 421 properties with approximately 50.9 million rentable square feet throughout infill Southern California. The company trades on the New York Stock Exchange under ticker REXR and maintains S&P MidCap 400 Index membership.
