LOS ANGELES, June 24, 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, announced the acquisition of five industrial properties
comprising 660,254 square feet of improvements on 28.8 acres of
land for an aggregate purchase price of $188.9 million. The acquisitions were funded
using a combination of cash-on-hand and proceeds from the Company's
previously executed forward equity offerings.
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"Rexford Industrial continues to leverage our proprietary access
to the nation's most highly sought-after industrial property market
within infill Southern California.
Unprecedented tenant demand continues to intensify, driven by the
post-pandemic economic resurgence and e-commerce related impacts
that disproportionately benefit our last-mile, Southern California industrial market. With
infill Southern California
occupancy near full capacity amidst a deep, incurable supply-demand
imbalance, we believe these investments are well-positioned to
drive favorable cash flow growth as we execute our value-creation
strategies," stated Howard Schwimmer
and Michael Frankel, Co-Chief
Executive Officers of the Company. "Year-to-date, we have completed
$420 million of acquisitions with
over $600 million of additional
investments under contract or LOI. We are well-positioned with a
low-leverage balance sheet and substantial liquidity to drive
shareholder value through accretive internal and external
growth."
During June, the Company acquired the following properties:
- 2425-2535 E. 12th Street located in Los Angeles within the Los Angeles – Central submarket for
$93.6 million or $363 per square foot. The recently repositioned
industrial campus comprises 257,976 square feet of improvements on
7.5 acres of land. Located adjacent to the Arts District in
downtown Los Angeles, the
high-image property caters to high-end creative-industrial,
e-commerce and traditional distribution-related tenants. The
property is 96% leased and offers premium functionality across 11
tenant spaces with 24-foot warehouse clearance and dock-high
loading. The investment is expected to generate an initial
stabilized unlevered yield of 4.9% on total investment, with the
potential for favorable cash flow growth thereafter. According to
CBRE, the vacancy rate in the 275 million square foot Los Angeles – Central submarket was 1.8% at
the end of the first quarter 2021.
- 19951 Mariner Avenue, located in Torrance, within the Los Angeles – South Bay submarket for
$27.4 million or $307 per square foot. Acquired through a
lightly-marketed transaction, the high-profile, 89,272 square foot
industrial building serves as a corporate headquarters situated on
4.2 acres of land in a premier last-mile location. Leased
long-term, the building features prime industrial functionality,
including 27-foot warehouse clearance, dock-high loading and an
oversized yard. The initial stabilized unlevered yield on total
investment is 5.3%, growing thereafter with 3% annual contractual
rental rate increases.
- 2555 E. Del Amo Boulevard, located in Rancho Dominguez, within the Los Angeles – South Bay submarket for
$13.5 million or $174 per square foot. The two, fully-leased
single-tenant industrial buildings comprise 77,758 square feet of
improvements on 3.2 acres of land. The investment provides the
potential for future value-add repositioning with favorable,
by-right trailer and outdoor storage zoning. The initial unlevered
yield on total investment is 3.8% and is expected to grow to over
6.3% after repositioning with modest improvements into a
low-coverage industrial facility.
According to CBRE, the vacancy rate in the 218 million square foot
Los Angeles – South Bay submarket
was 0.8% at the end of the first quarter 2021.
- An industrial property located within the Los Angeles – Greater San Fernando Valley
submarket for $27.3 million or
$87 per land square foot. Acquired
through an off-market transaction, the single-tenant
sale-lease-back comprises approximately 100,000 square feet of
improvements on over 7.0 acres. The property provides favorable
freeway access, proximity to Burbank Airport and the potential for
future value-add redevelopment. The investment generates an initial
4.4% stabilized unlevered yield on total investment, growing over
time with 3% contractual annual rent increases.
- 29120 Commerce Center Drive, located in Valencia within the Los Angeles – Greater San Fernando Valley
submarket for $27.1 million or
$200 per square foot. Acquired
through an off-market transaction, the fully-leased, two-tenant
industrial building comprises 135,258 square feet of improvements
on 6.9 acres. The property provides superior functionality
featuring 30-foot warehouse clearance, extensive dock-high loading
and favorable proximity to freeway access. The initial unlevered
yield on total investment is 3.4% and is expected to grow to over
4.7% as in-place leases at below-market rental rates expire and are
rolled to higher market rates.
According to CBRE, the vacancy rate in the 182 million square foot
Los Angeles – Greater San Fernando
Valley submarket was 2.4% at the end of the first quarter
2021.
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 266 properties with approximately 33.0 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, 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.