LOS ANGELES, Nov. 22, 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
five industrial properties for an aggregate purchase
price of $125.9 million. The company also announced
the disposition of one property for $11.7 million. The acquisitions were
funded using a combination of 1031 disposition
proceeds and cash on hand.
"These investments demonstrate Rexford's ability to
leverage our value-add expertise and proprietary access to the
nation's strongest and most highly-valued industrial market to
generate substantially above-market cash yields and return on
investment," said Howard Schwimmer
and Michael Frankel, Co-Chief
Executive Officers of the Company. "Our $1.4 billion of
investments completed year-to-date within infill Southern
California are indicative of Rexford's growth
opportunity as we deepen our market penetration within
the nation's highest-barrier industrial market. With over
$300 million of
acquisitions under contract or accepted offer,
our accretive internal and external growth, supported by
our low-leverage, fortress-like balance
sheet, enable us to continue
to generate favorable cash-flow growth and long-term
value for our stakeholders."
In October and November, the Company acquired:
- 21515 Western Avenue, located in Torrance, within the LA – South Bay submarket
for $19.0 million, or $108 per land square foot. Acquired through a
lightly-marketed transaction, the Company intends to redevelop the
existing 56,199 square foot retail use building on 4.0 acres of
industrially zoned land into an 85,520 square foot Class A
warehouse and distribution facility. The investment is projected to
generate a 4.8% unlevered stabilized yield on total cost. According
to CBRE, the vacancy rate in the 218 million square-foot LA – South
Bay submarket was 0.6% at the end of the third quarter 2021.
- 12027 Greenstone Avenue, located in Santa Fe Springs, within the LA – Mid-Counties
submarket for $8.1 million, or
$81 per land square foot. The
2.3-acre industrial outdoor storage site is immediately adjacent to
two existing Rexford owned storage sites and is leased at a rent
estimated to be approximately 80% below market rent. Upon lease
expiration, the Company intends to drive cash flow growth through
value-add repositioning into a modern container storage yard. The
investment is expected to generate a 5.8% stabilized unlevered cash
yield. According to CBRE, the vacancy rate in the 112 million
square-foot LA – Mid-Counties submarket was 0.2% at the end of the
third quarter 2021.
- 6027 Eastern Avenue, located in Commerce, CA, within the LA – Central
submarket for $23.3 million, or
$138 per land square foot. The
Company intends to redevelop the 3.9-acre site by constructing two
state-of-the-art buildings totaling 92,800 square feet of warehouse
distribution space, featuring 32-foot clear heights, superior
functionality and secured yards. The stabilized unlevered cash
yield is projected to be approximately 4.6% upon lease-up.
According to CBRE, the vacancy rate in the 273 million square-foot
LA – Central submarket was 1.9% at the end of the third quarter
2021.
- 340-344 Bonnie Circle, located
in Corona, CA, within the Inland
Empire – West submarket for $27.0
million, or $276 per square
foot. Acquired through an off-market transaction, the 98,000 square
foot, single tenant building on 5.2 acres of land is fully leased
at rent estimated to be approximately 45% below market. Upon lease
expiration, the Company intends to grow cash flow through the
renewal of the existing tenant at a market rent or by re-tenanting
after execution of modest value-add improvements. The initial
unlevered 2.7% cash yield is projected to grow to a stabilized
yield on total investment of 4.8%. According to CBRE, the vacancy
rate in the 319 million square-foot Inland Empire – West submarket
was 0.8% at the end of the third quarter 2021.
- 14100 Vine Place, located in Cerritos, CA, within the LA – Mid-Counties
submarket for $48.5 million, or
$407 per square foot. Acquired
through a lightly-marketed transaction, the 34% covered 8.1-acre
site contains one-single tenant 119,145 square foot building,
subject to a short-term lease. Upon near-term expiration of the
lease, the Company intends to execute value-add repositioning of
the property to include additional dock high loading and the paving
of excess land to create extensive outdoor storage capacity,
positioning the property to achieve premium market rents. The
stabilized unlevered cash yield is projected to be approximately
4.4%. According to CBRE, the vacancy rate in the 112 million
square-foot LA – Mid-Counties submarket was 0.2% at the end of the
third quarter 2021.
In November, the Company disposed of the following property:
- 2670-2674 Walnut Street and 89-91 San Gabriel Boulevard,
located in Pasadena, within the
Greater San Gabriel Valley submarket for $11.7 million, or $370 per square foot. The four-building, 31,619
square foot property on 1.0 acres of land was fully leased at the
time of sale. The unlevered IRR on the investment is 20.7%.
Proceeds from the sale were reinvested into the acquisition of
340-344 Bonnie Circle.
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 283
properties with approximately 35.3 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:
Stephen Swett
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.