LOS ANGELES, Dec. 17, 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 six-building industrial portfolio for $93.8 million and the acquisition of an
industrial outdoor storage yard for $16.8 million. The acquisitions were funded using
cash on hand.
"We continue to leverage our proprietary, research-driven
originations platform to source attractive off-market investment
opportunities in the high-demand, low-supply Southern California infill industrial market,"
stated Howard Schwimmer and
Michael Frankel, Co-Chief Executive
Officers of the Company. "Acquired from its long-time
owners and original developers, the Vernon portfolio
acquisition demonstrates the strength of our local
relationships and off-market sourcing advantage. This
irreplaceable portfolio, located in close proximity to
downtown Los Angeles, serves
last-mile logistics demand providing an opportunity
to proactively drive rent growth over time. Separately,
acquired at an attractive land basis, Greenstone Avenue provides
highly-sought-after industrial outdoor storage within a dense
infill location. Year-to-date we have completed over
$1.1 billion of
acquisitions, including $771
million in the fourth quarter. Looking ahead, we
believe Rexford Industrial is exceptionally well-positioned to
execute on our internal and external growth strategies
focused on creating long-term shareholder value."
The Company acquired through an off-market transaction a
six-building industrial portfolio in Vernon, within the LA – Central submarket, for
$93.8 million, or $202 per square foot. The portfolio
comprises single- and multi-tenant buildings containing
464,415 square feet on 20.93 acres of
land, featuring 20'-30' clear
heights with extensive dock-high loading. The
properties are 100% leased at rents estimated to be approximately
28% below current market rates, and are ideally positioned to serve
last-mile distribution and logistics needs in the center of
Greater Los Angeles, the nation's
largest metropolitan statistical area (MSA). The initial
unlevered yield on total investment is approximately 4.5% and is
expected to grow as in-place rents are increased to higher market
rates. According to CBRE, the vacancy rate in the 290 million
square foot LA – Central submarket was 2.6% at the end of the third
quarter 2020.
The portfolio properties are located in Vernon at 1921-1931 E 27th Street
(35,000 square feet); 2011-2025 E 27th Street
(40,437 square feet); 2031-2099 E 27th Street
(98,389 square feet); 2034-2040 E 27th Street
(126,563 square feet); 2750 S Alameda Street
(63,318 square feet); and 2800-2840 S Alameda Street
(100,708 square feet).
The Company also acquired 12211 Greenstone Avenue, located in
Santa Fe Springs within the LA –
Mid-Counties submarket, for $16.8
million, or $77 per land
square foot. The five-acre industrial outdoor storage
yard was developed in 2019 and is currently leased to a
high quality, national tenant at a rent estimated to be
approximately 23% below current market rates. The
initial unlevered yield on investment is approximately
4%. 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.
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 243 properties with approximately 31.0 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.