LOS ANGELES, Nov. 18, 2020
/PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company"
or "Rexford Industrial") (NYSE: REXR), a real estate investment
trust focused on creating value by investing in and operating
industrial properties located in Southern
California infill markets, today announced the
acquisition of a four-building industrial complex and a
three-tenant industrial
property for $339.2 million. The
acquisitions were funded using a combination of cash on
hand, 1031 exchange proceeds from prior dispositions, assumption of
existing debt and operating partnership units.
"These investments contribute towards the accretive
growth of our portfolio within the highly sought-after
Southern California industrial
market," stated Howard Schwimmer and
Michael Frankel, Co-Chief Executive
Officers of the Company. "Gateway Pointe Industrial
Campus provides nearly one million square feet of
institutional quality, Class A industrial space ideally
positioned to serve last-mile,
ecommerce-oriented tenant demand. The Balboa
Boulevard acquisition leverages our ability to offer
Operating Partnership Units in exchange for a Class A
industrial property through a tax-efficient UPREIT
structure in an off-market transaction. Year to date we
have closed nearly $730 million of
acquisitions, the majority of which have been off market or lightly
marketed transactions, leveraging our differentiated, research
driven platform and market expertise. As we look ahead, our
acquisition pipeline remains strong with approximately $600 million of new investments under LOI or
contract and expected to close in the coming
months. Rexford is exceptionally well positioned to
capitalize on the demand for industrial space within infill
Southern California as we execute our internal and
external growth strategies to create shareholder value."
The Company acquired Gateway Pointe Industrial
Campus located at 3963, 3931, 3735, and 3629 Workman Mill Road
in Whittier, within the LA –
Mid-Counties submarket, for $296.6
million, or $300 per square
foot. The 45.12 acre project comprises four
Class A industrial buildings containing 989,195 square
feet, leased at rents estimated to be approximately 21% below
current market rates. The 100% occupied
property features 32' clear heights at first bay,
extensive dock-high loading, excess container parking
and favorable access to major transportation
corridors. The Company intends to drive cash flow growth by
capitalizing upon below-market in-place rents to renew in-place
tenants or re-tenant at higher market rates. The Company
funded the acquisition with a combination of cash on hand and 1031
proceeds from prior dispositions. The unlevered
cash yield on total investment grows from 3.6% at initial
stabilization to over 4% through steady cash flow growth
from contractual annual rent escalators as well as with
mark-to-market upside as leases roll over the next several
years. According to CBRE, the vacancy rate in the
112 million square foot LA – Mid-Counties submarket was
2.2% at the end of the third quarter 2020.
In addition, the Company acquired through an off-market
transaction 13943-13955 Balboa Boulevard, located in
Sylmar within the LA – San
Fernando Valley submarket, for $42.6 million, or
$212 per square foot. The 100%
occupied, three-tenant Class A industrial
building contains 200,632 square feet on 10.5 acres of
land. In-place rents are estimated to be approximately
19% below market with near-term expirations. The company
expects to drive cash flow growth by completing moderate
capital improvements and renewing or releasing at
higher market rental rates. The initial yield is 4.4% and
the stabilized yield on total cost for the investment is
projected to be 4.9%, with continued cash flow growth projected
into future periods. According to CBRE, the vacancy rate in
the 175 million square foot LA – San Fernando Valley submarket was
2.7% at the end of the third quarter 2020.
The OP Units, newly issued from the Company's
operating partnership, Rexford Industrial Realty,
L.P., used to fund the Balboa acquisition are redeemable
by the seller on a one-to-one basis for shares of the Company's
publicly traded common stock.
About Rexford Industrial
Rexford Industrial, a real estate investment trust focused on
creating value by investing in and operating industrial properties
throughout Southern California
infill markets, owns 235 properties with approximately 29.2 million
rentable square feet and manages an additional 20 properties with
approximately 1.0 million rentable square feet.
For additional information, visit www.rexfordindustrial.com.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws, which are based on
current expectations, forecasts and assumptions that involve risks
and uncertainties that could cause actual outcomes and results to
differ materially. Forward-looking statements relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends and similar expressions concerning
matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as "may," "will," "should," "expects," "intends,"
"plans," "anticipates," "believes," "estimates," "predicts," or
"potential" or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters.
While forward-looking statements reflect the Company's good faith
beliefs, assumptions and expectations, they are not guarantees of
future performance. For a further discussion of these and other
factors that could cause the Company's future results to differ
materially from any forward-looking statements, see the reports and
other filings by the Company with the U.S. Securities and Exchange
Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 2019 and
the Current Report on Form 8-K filed with the SEC on or about the
date of this press release. The Company disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes.
Contact:
Investor Relations:
Stephen Swett
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.