LOS ANGELES, June 7, 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, announced
the acquisition of five industrial properties comprising 79,305
square feet of improvements on 18.8 acres of land for an aggregate
purchase price of $68.1 million. The
Company also announced the disposition of one industrial property
for $8.2 million. The acquisitions
were funded using a combination of cash-on-hand and 1031
disposition proceeds.
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"These investments, acquired through off- and lightly-marketed
transactions, demonstrate the strength and uniqueness of the
Rexford platform. Our proprietary access to the nation's strongest
industrial market in infill Southern
California also enables superior return on invested equity
and favorable cash flow growth, as we leverage our specialized,
value-add expertise," stated Howard
Schwimmer and Michael
Frankel, Co-Chief Executive Officers of the Company. "As the
Southern California high
vaccination rate and low Covid case count drive further re-opening
of businesses and public facilities combine with unprecedented
e-commerce demand growth, our last-mile Southern California logistics portfolio is
exceptionally well-positioned within the nation's highest-demand
and lowest-supply industrial market. Rexford's strong embedded
internal growth and extensive external growth prospects are enabled
by a low-leverage, fortress-like balance sheet, with approximately
$525 million of additional
investments under contract or LOI. We believe the Company is
well-situated to continue to create superior stakeholder and
shareholder value."
During the second quarter, the Company has acquired the
following properties:
- 12118 Bloomfield Avenue, located in Santa Fe Springs, within the Los Angeles – Mid-Counties submarket for
$16.7 million or $74 per land square foot. The property consists
of a 5.2-acre, low coverage land site leased back short-term to the
seller. The Company plans to remove existing improvements and
develop a two-tenant, 32-foot clear, modern logistics building
expected to generate an initial stabilized unlevered yield on total
investment of 5.4%. According to CBRE, the vacancy rate in the 112
million square foot Los Angeles –
Mid-Counties submarket was 0.7% at the end of the first quarter
2021.
- 256 Alondra Boulevard, located in Carson within the Los Angeles – South
Bay submarket for $11.3
million or $93 per land square
foot. The property comprises a 2.8 acre industrial outdoor storage
yard leased long-term to a single tenant. The site provides
favorable freeway access in close proximity to LAX and the
Los Angeles-Long-Beach port
complex. The investment generates a 5.2% initial unlevered yield,
growing over time with 3% contractual annual rent increases.
- 19007 S. Reyes Avenue located in Rancho Dominguez within the Los Angeles – South
Bay submarket for $16.4
million or $83 per land square
foot. The 4.5 acre industrial site will undergo value-add
repositioning by clearing the site of vintage, dysfunctional
improvements and conversion to a paved container storage facility.
Pre-leased immediately post-closing, the projected initial
stabilized unlevered yield on total investment is approximately
6.1%.
- 19431 Santa Fe Avenue located in Rancho Dominguez within the Los Angeles – South
Bay submarket for $10.5
million or $82 per land square
foot. The 100% leased, low coverage site comprises 14,793 square
feet of improvements on 3.0 acres. The initial unlevered yield on
total investment is 4.5%, which is expected to grow to
approximately 5.8% once the below-market in-place lease rolls.
256 Alondra Boulevard, 19007 S. Reyes Avenue and 19431 Santa Fe
Avenue are located within the 218 million square foot Los Angeles – South
Bay submarket which, according to CBRE, had a vacancy rate
of 0.8% at the end of the first quarter 2021.
- 4621 Guasti Road located in Ontario within the Inland Empire – West
submarket for $13.3 million or
$207 per square foot. The
single-tenant industrial building comprises 64,512 square feet on
3.4 acres. The property was pre-leased during escrow, generating an
initial stabilized unlevered yield on total investment of 5.3%,
growing thereafter with 4% contractual annual rental rate
increases. According to CBRE, the vacancy rate in the 316 million
square foot Inland Empire – West submarket was 1.2% at the end of
the first quarter 2021.
The Company sold during May:
- 11541 Tuxford Street located in
Sun Valley within the Los Angeles – Greater San Fernando Valley
submarket for $8.2 million or
$275 per square foot, after receiving
an unsolicited offer approximately 10 months after acquiring the
property for $168 per square foot.
The 29,730 square foot building is located on 1.3 acres. Proceeds
from the sale were reinvested into 4621 Guasti Road, located in
Ontario.
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 261 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, 2020, and the
Company's most recent Form 10-Q. 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:
Kosta Karmaniolas
310-691-5475
kkarmaniolas@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.