LOS ANGELES, March 31, 2021 /PRNewswire/ -- Rexford
Industrial Realty, Inc. (the "Company") (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 five industrial properties
representing 382,314 square feet of improvements for an aggregate
purchase price of $68.8 million. The
Company also announced the disposition of one industrial property
for $1.5 million. The acquisitions
were funded using a combination of cash-on-hand and 1031 proceeds
from the disposition.
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"These investments deepen our presence within infill
Southern California, the nation's
most sought-after industrial market," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "We will leverage our value-add repositioning
expertise at these properties to drive cash flow and NAV growth
while generating superior stabilized yields. With over $350 million of acquisitions under contract or
LOI, we see substantial opportunity to create long-term shareholder
value."
The Company acquired the following properties during February
and March:
- 9920-10020 Pioneer Boulevard, located in Santa Fe Springs, within the Los Angeles – Mid-Counties submarket for
$23.3 million or $147 per square foot. The seven buildings
comprise 157,699 square feet on 8.3 acres of land. The Company
plans to reposition the mostly vacant buildings with capital
improvements to modernize and improve functionality. The expected
stabilized yield on total investment is 5.2%. According to CBRE,
the vacancy rate in the 112 million square foot Los Angeles – Mid-Counties submarket was 1.4%
at the end of the fourth quarter 2020.
- 2253 Garfield Avenue and 6655 26th Street, City of Commerce within the Central Los Angeles submarket and 560 N. Main
Street, Orange within the
North Orange County submarket,
were collectively acquired in an off-market transaction for
$13.0 million or $144 per square foot. The three 100% leased
properties comprise 90,115 square feet on 4.8 acres with favorable
access to dense population centers. The initial unlevered yield is
approximately 3.6%. As value-add enhancements are completed and
below market leases roll, the yield on total investment is expected
to stabilize at approximately 6.9%. According to CBRE, the vacancy
rate in the 165 million square foot Central Los Angeles submarket was 1.3% and
1.1% in the 115 million square foot North
Orange County submarket, at the end of the fourth quarter
2020.
- 4225 Etiwanda Avenue located in Jurupa Valley within the Inland
Empire – West submarket for $32.3
million or $240 per square
foot. The 100% leased, three-tenant industrial building comprised
134,500 square feet on 6.6 acres and features 30-foot clear height
with a 145-foot deep truck court. The initial unlevered yield on
total investment is 3.5% and is expected to stabilize at
approximately 4.7% after leases roll to higher market rents.
According to CBRE, the vacancy rate in the 314 million square foot
Inland Empire – West submarket was 1.9% at the end of the fourth
quarter 2020.
The Company sold in March:
- 6760 Central Avenue located in Riverside within the Inland Empire – East
submarket for $1.5 million or
$150 per square foot. The 9,943
square foot building is located on 0.6 acres in a non-core
submarket. Proceeds from the sale were reinvested into 560 N. Main
Street, located in Orange.
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 257
properties with approximately 32.3 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:
Kosta
Karmaniolas
SVP, Corporate Finance & Investor Relations
301-691-5475
kkarmaniolas@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.