LOS ANGELES, Dec. 4, 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 an
industrial property portfolio for $154.6 million.
The acquisition was funded with cash on hand.
"This investment demonstrates Rexford's sharp-shooter advantage
by leveraging our proprietary originations platform to acquire an
18-building portfolio of irreplaceable industrial properties through an off-market
transaction in one of the nation's lowest-supply,
highest-demand submarkets," stated Howard
Schwimmer and Michael
Frankel, Co-Chief Executive Officers of the
Company. "Located adjacent to the Van Nuys Airport in the L.A.
– San Fernando Valley submarket, Van Nuys Airport Industrial
Center provides exceptional last mile and ecommerce
functionality servicing the San Fernando Valley and
West Los Angeles markets, one of
the largest concentrations of population and consumption in the
nation. As we look forward, we remain very pleased with the
opportunities before us to drive accretive internal and external
growth designed to enhance shareholder value."
The Company acquired through an off-market transaction Van Nuys
Airport Industrial Center, located in Van
Nuys within the LA – San Fernando Valley submarket, for
$154.6 million. The
investment comprises 18 separately parceled buildings
totaling 426,466 square feet on 22.68 acres of land acquired
for $140.6 million, or $330 per square foot, plus two
fully-leased industrial outside storage land parcels totaling
4.14 acres acquired for $14.0
million. These industrial properties
offer high-demand spaces ranging up to 42,000
square feet with premium functionality including dock-high loading,
modern clear heights and secured truck storage yards, ideally
positioned to serve last-mile distribution and logistics
needs. The portfolio is 99% leased to a high-quality
tenant base including Fortune 500 companies as well as
the General Services Administration, with rents estimated to be
approximately 6.0% below current market rates. The initial
unlevered yield on total investment is approximately 4.0% and is
expected to grow to mid-4% as in-place rents are increased to
higher market rates. Projected contractual annualized rental
rate increases of 3.0% or greater thereafter will provide for
further investment yield expansion. 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.
In connection with this transaction, the Company expects to
close on the acquisition of one additional property included
with the portfolio referenced above located
at 7817 Woodley Avenue within the L.A. – San Fernando
Valley submarket, for $10.0
million, or $270 per
square foot. This fully leased, single tenant property
contains 36,900 square feet on 1.63 acres. The close of this
subsequent transaction is expected
to occur in January 2021,
and is subject to the assumption of existing debt on the
property.
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 236 properties with approximately 29.9 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.