Publicly traded outfits have their favorite buzzwords. Very-vanilla industrial REIT Rexford used about all of them on its Friday earnings call: opportunistic dispositions, accretive capital recycling, operational rigor, outsized total shareholder returns.
But here’s what you need to know:
The REIT increased its sell-off target to $2 billion of real estate. Earlier, it was around $500 million.
The $2 billion in planned dispositions reflects 8 million square feet of space.
The REIT posted a $507 million loss in the second quarter, compared to a $113 million profit the same period last year.
The loss was mostly because of write-downs. Basically, Rexford is selling some real estate sooner than anticipated, which effectively renders the properties worth less than what the books reflect.
Funds from operations, a measure REITs prefer, increased one percent year-over-year to $141 million.
Rexford raked in $138 million via the sale of seven SoCal properties, and it is in advanced discussions on a substantial number of sales.
It is only the beginning of earnings season, so stay tuned.
Done deal downtown?
It’s official. A bankruptcy court approved the sale of downtown Los Angeles’ eyesore, the graffiti-covered, abandoned three-tower mega-development called Oceanwide Plaza.
After the city of Los Angeles and other parties pulled their objections, and an hours-long hearing, federal judge Deborah J. Saltzman signed off. Her decision wasn’t much of a surprise … after a lengthy break to get lawyers on the same page, she all but confirmed the plan. The hearing ended with thanks and congratulations. There was an offer that surfaced the day after, but apparently it wasn’t a game changer.
The order she signed said the sale is for the highest price attainable and there was no collusion between the debtor — the bankrupt Chinese conglomerate that put about a billion in the development, under the eye of a chief restructuring officer — and the purchaser — the KPC-Lendlease JV.
Here is what the final deal, when it comes to the sale of the real estate, entails after lots of back and forth:
The $470 million price ($400 million credit, $70 million cash) turned into $500 million-plus because of still-accruing property taxes, interest on the creditors’ claim KPC purchased and more.
The development can still be marketed, a deal can be negotiated and a back-up buyer can be chosen, if the JV doesn’t or can’t close. (That back-up buyer would need to show the money and close six months after the KPC deal was terminated).
The KPC-Lendlease closing can be extended without court approval if all parties agree.
The parties have 90 to clean the graffiti. They were given 30 days to start and have already begun.
The sale is not subject to Measure ULA under its status as a bankrupt property.
The post-confirmation hearing is scheduled for October.
A blow in Burbank
Blackstone and Worthe’s Tower at Burbank could see its second-largest tenant shrink its space. Vubiquity, a tech services provider for the media and entertainment industry, is renewing its lease, but reducing its footprint from 56,000 square feet to about 19,000 square feet, per Morningstar Credit.
Occupancy at the Burbank office tower has dropped to 73 percent in March 2026, compared to 97 percent in August 2019, when the $195 million debt originated. Neither Blackstone nor Worthe Real Estate Group immediately responded to a request for comment.
Turn over in WeHo
The Traded: Los Angeles account on X previously posted La Peer, a Kimpton hotel in West Hollywood, had sold but did not report a price.
Turns out the trade had a price tag of about $63 million, records reveal. That comes out to $600,000 per key for the luxe hotel on La Peer Drive.
The seller is KHP Capital Partners, a private equity outfit founded by former Kimpton execs. The buyer is APA Group, a Japanese hotel conglomerate. Neither the buyer nor seller could be reached for comment.
There’s been a lot of movement in the WeHo hotel world lately. Daniel Negari purchased the Chamberlain, after his Montrose buy late last year, and the Reuben brothers took over Witkoff’s Edition hotel. Chatter indicates there may be more to come.
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