EQT Real Estate acquires 5.2 million square foot logistics portfolio in Southern California
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EQT Real Estate has acquired a 5.2 million square foot logistics portfolio from Rexford Industrial Realty, covering five submarkets across Southern California. The portfolio consists of 32 buildings and is 96% leased to 36 tenants, with an average remaining lease term of 2.7 years. The properties are spread across Los Angeles, Orange County, the San Gabriel Valley, South Bay and Inland Empire West. More than 50% of the total area is located in infill markets, including Los Angeles, Orange County, the San Gabriel Valley and South Bay, all within about 25 miles of the Los Angeles and Long Beach port complex. The remaining 46% of the portfolio is concentrated in Inland Empire West. These properties are located along the I-10, I-15, SR-60 and SR-91 freight corridors and are also close to Ontario International Airport. This gives the portfolio exposure to both coastal distribution markets and larger regional logistics facilities. The acquisition was made through EQT Real Estate Industrial Value Fund VI. Industry publication Alternatives Watch reported the transaction value at about USD 1.2 billion. Rexford Industrial's portfolio had in-place rents that were reported to be 28% above current market rents at closing, while its estimated 2027 cash net operating income yield was about 5.5%. The yield was expected to decline as some above-market leases expire and anticipated tenant...
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