Rexford Sells Fullerton Industrial Asset for $50M as Southern California Sales Shift
Rexford Industrial Realty has completed the $50.2 million sale of a 136,000-square-foot facility in Fullerton to Terra Industrial, according to reporting from Bisnow. The transaction highlights a busy period for Southern California commercial real estate, featuring significant office and multifamily trades alongside major industrial moves and new executive hires across the region.
)
Context from Industry Pulse
The recent transactions reported by Bisnow illustrate a broader trend of portfolio rebalancing and operational consolidation across Southern California. Industrial users like Terra Industrial are prioritizing efficiency by trading larger, fragmented footprints for single, streamlined facilities, even if it means a slight reduction in total square footage. Meanwhile, the multifamily market continues to see long-term family owners exit assets to facilitate 1031 exchanges, indicating a shift toward institutional or professional management. The office sector remains functional for well-leased suburban assets, as evidenced by the La Palma sale, while the retail sector is leveraging insurance company financing for stable, grocery-anchored power centers in outlying markets like Lancaster.
In a strategic consolidation move, Terra Industrial purchased a 136,000-square-foot industrial property located at 1500 S. Raymond Ave. in Fullerton. As reported by Bisnow, the buyer transitioned from two separate facilities that totaled 180,000 square feet. This shift was motivated by a need to resolve operational inefficiencies and reduce the high long-term occupancy costs associated with managing multiple sites. Cushman & Wakefield facilitated the deal, representing both the seller, Rexford Industrial Realty, and the buyer.
Multifamily activity remains robust in the Anaheim area, where Marcus & Millichap recently oversaw the $9.7 million sale of the Knott-Orange Apartments. This 35-unit complex was sold by a family that had managed the asset for three decades. Bisnow notes that the seller is currently rebalancing a larger regional portfolio through 1031 exchanges. The buyer was identified as a Southern California-based property management firm. The sale price averaged approximately $275,714 per unit for the 32,300-square-foot property.
Office and retail sectors also saw notable activity. In La Palma, an institutional seller divested a 56,000-square-foot office building for $14.3 million. According to Bisnow, the property at 20 Centerpointe Drive was 84% occupied at the time of the sale, with a tenant roster including Telecare Corp and Convergint Technologies. In the retail space, Gantry arranged a $31 million permanent refinance for the Valley Central Shoppes in Lancaster. This 174,000-square-foot power center is shadow-anchored by major retailers like Walmart and Food 4 Less.
Regional firms are also expanding their physical footprints and leadership teams. MVE + Partners is moving its Los Angeles headquarters to a larger space at The Bloc, which offers 60% more capacity than its previous office. Simultaneously, Newmark strengthened its industrial investment division by hiring Justin Rappel as a senior managing director in El Segundo. Furthermore, Kidder Mathews added Mac Hall to its healthcare advisory team in Century City to focus on medical and veterinary real estate brokerage.
The Industry Pulse Bottom Line
Industrial consolidation and strategic 1031 exchanges are currently driving Southern California deal flow, as owners seek to lower occupancy costs and professionalize their real estate holdings amid shifting market conditions.