Western Realco Secures 12-Acre Anaheim Industrial Site for $40.7M Development

In a $40.7 million transaction that underscores Southern California's industrial sector resilience, Western Realco has acquired a fully entitled 12.14-acre development site on East Vermont Avenue in Anaheim from Rexford Industrial Realty. The buyer plans to immediately commence demolition and vertical construction to deliver a 256,046-square-foot Class A industrial building by late 2027.

The acquisition adds another institutional-grade project to Western Realco's growing Southern California portfolio, while representing a strategic disposition for Rexford, which has been actively recycling capital from non-core holdings. The deal priced at approximately $159 per square foot for the planned building, reflecting current market adjustments for development sites in Orange County's competitive industrial corridor.

Key Details

• Buyer: Western Realco
• Seller: Rexford Industrial Realty
• Broker: JLL (Zach Niles, Louis Tomaselli, Steve Wagner)
• Sale Price: $40.7 million
• Site Size: 12.14 acres
• Planned Building: 256,046 square feet, Class A industrial
• Location: East Vermont Avenue, Anaheim
• Timeline: Demolition and construction beginning immediately; completion expected late 2027
• Entitlement Status: Fully entitled at time of sale

The fully entitled nature of the site was a critical value driver, allowing Western Realco to bypass lengthy permitting processes that often delay industrial projects in California by 18-24 months. By closing on shovel-ready land, the developer gains a competitive timing advantage in a market where new supply deliveries remain constrained.

Market Context

The transaction highlights several trends shaping Orange County's industrial landscape. Vacancy rates in the Anaheim submarket have compressed below 3% over the past year, driven by e-commerce demand and limited new construction pipelines. Institutional developers like Western Realco are positioning to capture tenant demand from logistics operators, third-party logistics providers, and manufacturers seeking modern facilities with clear heights exceeding 32 feet and upgraded truck courts.

Rexford's decision to sell aligns with the REIT's strategy of optimizing its portfolio by monetizing sites that fall outside its core operating parameters. The company has completed over $1 billion in dispositions over recent quarters, redeploying capital into stabilized assets with immediate cash flow.

According to Connect CRE, the deal was completed through JLL's capital markets team, which has been actively brokering industrial land sales across the region as developers compete for well-located infill sites.

For CRE professionals tracking Orange County's industrial sector, the deal signals that well-located development sites continue to trade at premium valuations, particularly when entitlements are already secured. With construction costs remaining elevated and interest rates stabilizing, developers with strong balance sheets and institutional backing are best positioned to execute on speculative and build-to-suit projects in this cycle.

The late 2027 delivery timeline suggests Western Realco is betting that market conditions will support leasing activity well before the building's completion, a calculated risk given current demand fundamentals in the Anaheim market.