LOS ANGELES, Feb. 8, 2021 /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 three
industrial properties representing 176,670 square
feet of improvements, a 2.5 acre industrial outdoor
storage site and a 5.6 acre redevelopment
site for an aggregate purchase price
of $72.7 million. The acquisitions were funded
using a combination of cash-on-hand, 1031 proceeds and the
assumption of debt on one property.
"As we start the year, we are very pleased with our transaction
activity as we continue to source high-quality, irreplaceable
industrial properties within supply-constrained infill
Southern California," said
Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "Acquired through
off-market and lightly-marketed transactions, these
investments demonstrate the strength of our proprietary sourcing
advantage and ability to leverage our value-add expertise to
generate superior cash flow growth as
we reposition these properties to achieve attractive
stabilized yields. Looking ahead, we are well positioned
to drive accretive internal and external growth within the nation's
lowest-supply, highest-demand industrial market as we leverage our
deep local market knowledge and low leverage balance sheet to
create shareholder value."
The Company acquired the following properties in January
and February through off-market transactions:
- 5002-5018 Lindsay Court, located
in Chino, within the Inland
Empire-West submarket for $12.7
million or $195 per square
foot. The modern, two-tenant building contains 64,960 square feet
on 2.97 acres of land and features above standard loading with a
135-foot deep truck court. Following the near-term expiration of
the two in-place leases, the Company intends to drive cash-flow
growth by implementing a moderate capital improvement plan to
reposition and re-lease the property at higher market rents. The
stabilized unlevered cash yield on total investment is projected to
be approximately 5.0%. According to CBRE, the vacancy rate in the
314 million square foot Inland Empire – West submarket was 1.6% at
the end of the fourth quarter 2020.
- 17907-18001 S. Figueroa Street,
located in Los Angeles within the
LA-South Bay submarket for $20.2
million or $91 per land square
foot. The 100% leased, 74,810 square foot multi-building industrial
property provides a low-coverage, 5.6 acre land site featuring
immediate access to multiple freeways with the potential for either
a) value-add repositioning to further drive rents and cash flow
growth at the expiration of in-place leases, or b) ground-up
re-development of a modern, single-tenant logistics building. The
initial unlevered yield on total investment is approximately 3.5%
and the expected stabilized yield is 5.5%. According to CBRE, the
vacancy rate in the 219 million square foot LA – South Bay
submarket was 1.2% at the end of the fourth quarter 2020.
- 7817 Woodley Avenue, located in Los
Angeles within the LA – San Fernando Valley submarket for
$10.0 million or $270 per square foot, including the assumption of
in-place debt. The 100% leased, single-tenant industrial property
contains 36,900 square feet on 1.63 acres. The property, which had
been subject to a loan assumption to facilitate closing, represents
the remaining asset in the Van Nuys Airport Industrial Center
portfolio recently acquired by the Company during December 2020. According to CBRE, the vacancy
rate in the 182 million square foot LA – San Fernando Valley
submarket was 2.2% at the end of the fourth quarter 2020.
- 514 East C Street, located in Wilmington, within the LA – South Bay
submarket for $10.0 million or
$92 per land square foot. The 100%
leased, single-tenant trucking and container storage facility
encompasses 2.5 acres of paved, fenced and illuminated yard with a
3,400 square foot office building. The property is located adjacent
to the Port of Los Angeles and was
leased back to the seller at closing. The initial unlevered yield
on total investment is approximately 4.8%. According to CBRE, the
vacancy rate in the 219 million square foot LA – South Bay
submarket was 1.2% at the end of the fourth quarter 2020.
- 8888-8892 Balboa Avenue, located
in San Diego within the
San Diego – Central submarket for
$19.8 million or $82 per land square foot. The Company plans to
demolish the existing improvements on the 5.6 acre site and
construct a new, 120,900 square foot Class A industrial building
featuring 36-foot clear heights. The stabilized yield on total
investment is projected at 5.6%. According to CBRE, the vacancy
rate in the 81 million square foot San
Diego – Central submarket was 3.8% at the end of the fourth
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 254 properties with approximately 31.9 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.