LOS ANGELES, Sept. 13, 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
four industrial properties comprising 837,500 square
feet of improvements, for an aggregate purchase price
of $250.5 million. The acquisitions were funded
using cash on hand and proceeds from forward equity
settlements.
"These investments demonstrate Rexford's unique access
to supply-constrained infill Southern California, the nation's most
sought-after industrial market," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "Through our proprietary originations
platform, we continue to leverage our deep local sharp-shooter
advantage together with our value-add redevelopment expertise to
enable superior return on investment and favorable cash flow
growth. With over $1 billion
of industrial property acquisitions completed within
infill Southern California
year-to-date and $375 million of additional investments
under contract or accepted offer, the Company is well-positioned
with a low-leverage, fortress-like balance sheet to create
long-term shareholder value."
In late August and early September, the
Company acquired the following properties:
- 1801 E. St. Andrew Place, located in Santa Ana, within the Orange County – Airport submarket for
$105.3 million, or $115 per land square foot. The 100% leased,
covered land site comprises a 370,375 square foot
office/warehousing building on 21.3 acres, located adjacent to the
CA-55 freeway with direct access to the I-5 and I-405 freeways.
Fully leased long-term to two credit tenants, the investment is
projected to generate an initial 5.6% unlevered cash yield, with
approximately 2.5% average contractual annual rent increases. Upon
expiration of in-place leases, the Company intends to redevelop the
site into modern, Class A logistics buildings. According to CBRE,
the vacancy rate in the 68 million square-foot Orange County – Airport submarket was 2.6% at
the end of the second quarter 2021.
- 2401-2421 N. Glassell Street,
located in Orange, within the
Orange County – North submarket
for $70.0 million, or $133 per land square foot. Acquired through an
off-market transaction, the covered land site comprises a 12.5 acre
property containing four office buildings totaling 191,125 square
feet, leased long-term to a single credit tenant. The site is
located in a prime infill Orange
County location with immediate access to the CA-57, CA-55,
CA-91, CA-22, and I-5 freeways. The initial unlevered cash yield is
projected at 4.9% with contractual annual rent increases of 3.0%.
The Company intends to redevelop the property upon expiration of
the in-place lease by constructing new Class A industrial
buildings. According to CBRE, the vacancy rate in the 115 million
square-foot Orange County – North
submarket was 1.4% at the end of the second quarter 2021.
- 2390-2444 N. American Way, located in Orange, within the Orange County – North submarket for
$16.7 million or $96 per land square foot. Acquired through an
off-market transaction, the 4.0 acre vacant site will be
redeveloped into two state-of-the-art industrial buildings totaling
approximately 96,100 square feet, featuring 32' clear heights. Upon
lease-up, the stabilized unlevered cash yield on total investment
is projected to be 5.2%.
- 500 S. Dupont Avenue, located in Ontario, CA, within the Inland Empire – West
submarket for $58.5 million or
$212 per building square foot.
Acquired through an off-market transaction, the fully leased,
276,000 square foot, single-tenant building is located on 11.1
acres in the heart of the high-demand Inland Empire-West submarket.
The investment generates an initial 3.0% unlevered cash yield
growing to a projected stabilized yield of 5.8% over time as the
current in-place rent, estimated to be 40% below-market, is rolled
to a higher market rent upon renewal or re-tenanting. According to
CBRE, the vacancy rate in the 316 million square-foot Inland Empire
– West submarket was 1.0% 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 277 properties with approximately 34.6 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.