Rexford Industrial Realty Inc. of Los Angeles has acquired a former U.S. Postal Service annex facility in San Diego’s Midway district for $19.3 million, with plans to redevelop the property into new industrial spaces.
The investment firm purchased the vacated facility, at 2535 Midway Drive, from the U.S. Postal Service. A Rexford statement said the transaction “presents an opportunity to acquire and reposition two prominent industrial buildings in a dense, supply-constrained infill submarket in central San Diego.”
The property consists of two buildings with a total of 373,000 rentable square feet on 16 acres, near the sports arena in northern Point Loma.
Rexford plans an initial phase that will include redeveloping the ground floor of the two buildings into 10 industrial units ranging between 10,000 and 45,000 square feet, totaling approximately 229,000 square feet. Improvements will include dock-high and ground-level loading capabilities, with new office areas and surface parking.
The second phase will include repositioning up to approximately 144,000 square feet of second-floor space in the larger of the two buildings. Rexford expects to complete work and deliver the first finished spaces within 18 months.
Officials of Rexford (NYSE: REXR) said the acquisition brought its year-to-date acquisition volume to nearly $200 million. The real estate investment trust owns interests in 116 Southern California industrial properties, including several in San Diego County.