LOS ANGELES, Aug. 23, 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 two industrial
properties comprising 629,224 square feet of improvements
across eight industrial buildings for an aggregate
purchase price of $194.4 million. The
acquisitions were funded using cash on hand.
"These investments, acquired through off-market
transactions, demonstrate the company's programmatic and
proprietary approach to identifying exceptionally
well-located, off-market investment
opportunities with substantial, above-market return
on investment and cash flow growth within infill Southern
California, the nation's lowest-supply and
highest-demand industrial market," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "Our local sharpshooter focus continues to
generate favorable access to high-quality industrial property
investments within a market that ranks as the fourth
largest industrial market in the world, behind only the
entire country-wide markets of the United States, China and Germany. With $779 million of
acquisitions completed year-to-date,
plus an additional $600 million of new
investments under contract or accepted offer, we are well
positioned to drive superior shareholder value creation through
accretive internal and external growth."
In August, the Company acquired the following
properties through off-market transactions:
- 8210-8240 Haskell Ave, located in Van
Nuys, within the LA – San Fernando Valley submarket for
$12.4 million or $233 per square foot. The property comprises
three vacant industrial buildings containing 53,248 square feet of
improvements on 2.3 acres of land located adjacent to the I-405
freeway with immediate access to US-101 and Van Nuys Airport. The
Company intends to execute a value-add repositioning program to
modernize and increase functionality of the buildings. The
stabilized unlevered cash yield on total investment is projected to
start at 5.0% upon lease-up with growth expected thereafter.
According to CBRE, the vacancy rate in the 182 million square-foot
LA – San Fernando Valley submarket was 1.4% at the end of the
second quarter 2021.
- 3100 Lomita Blvd, located in Torrance, within the LA – South Bay submarket
for $182.0 million or $316 per square foot. The 91% leased, 575,976
square foot, five-building light industrial and manufacturing
campus is located in Western
Torrance on 26.6 acres of land within a premier infill South
Bay location. The property, currently leased to three credit
tenants on long term leases, is positioned to generate an initial
yield of 5.3%, growing over time with approximately 3.0% annual
contractual rent escalations. Upon expiration of the leases, the
Company intends to either renew the entrenched tenants or construct
new Class A industrial buildings on the site. In connection with
the transaction, the Company prepaid an existing loan on the
property and incurred a $20.4 million
prepayment fee in addition to the purchase price at closing.
According to CBRE, the vacancy rate in the 218 million square-foot
LA – South Bay submarket was 0.6% at the end of the second 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 273 properties with approximately 33.8 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:
Stephen Swett
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.