LOS ANGELES, Dec. 20, 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 $141.4 million. The acquisitions were funded
using cash on hand.
"These five investments, acquired through off-market
transactions, reflect our ability to capitalize
upon Rexford's deep, local sharp-shooter market
knowledge and relationships, our value-add expertise and
proprietary access to the infill Southern California market,
the nation's strongest, most resilient and highest demand
industrial market," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "Our $1.6 billion of investments
completed year-to-date are indicative of Rexford's
substantial growth opportunity ahead as we consolidate
our best-in-class portfolio within infill Southern California, the world's fourth
largest industrial market, which surpasses in size all global
markets except the entire national markets of the United States, China and Germany. With over $350 million of additional acquisitions under
contract or accepted offer and extensive internal growth
initiatives under-way, Rexford is well-positioned with
a low-leverage, fortress-like balance
sheet to continue to generate above-market cash flow
growth and long-term value creation for our
stakeholders."
In November and December, through off-market
transactions, the Company acquired:
- 20481 Crescent Bay Drive, located in Lake Forest, within
the Orange County - South submarket for $19.5 million, or $221 per square foot. The 4.8-acre site
contains an 88,355 square foot, single-tenant industrial
building leased at a rental rate estimated to be
approximately 35% below market rates. Upon lease expiration,
the Company intends to drive cash flow growth through either
value-add repositioning and re-tenanting or through lease
renewal at market rent. The initial stabilized unlevered cash
yield is 3.7%. According to CBRE, the vacancy rate in
the 34 million square foot Orange County - South submarket was 2.2% at
the end of the third quarter 2021.
- 2280 Ward Avenue, located in Simi
Valley, within the Ventura County submarket for
$46.4 million, or $192 per square foot. The 242,100 square
foot, modern Class-A six-tenant building is fully leased
at rental rates estimated to be 25% below
market rates and features
high-demand mid-size, dock-high units. The initial
stabilized unlevered cash yield is 4.6%, which is projected
to grow to above 5.0% over time, driven by a
combination of annual contractual rent escalations, repositioning
and re-tenanting of vacated spaces and releasing to
existing tenants at market rents. According to CBRE, the vacancy
rate in the 68 million square-foot Ventura County submarket was 0.9% at the end
of the third quarter 2021.
- 334 El Encanto Road, located in the City of Industry, CA, within the LA – San
Gabriel Valley submarket for $10.7 million, or $64 per land square foot. The 64,368
square foot, single tenant building is situated on 3.8
acres of land leased to a single, entrenched tenant
at a rental rate estimated to be approximately 30%
below market rates. Upon lease expiration, the in-place
tenant will either be renewed or the property may be redeveloped
into a new Class A, 81,000 square foot modern industrial
building. The initial in place 3.7% cash yield is projected to
grow to a stabilized unlevered cash yield of approximately 5.7%.
According to CBRE, the vacancy rate in the 159 million
square foot LA – San Gabriel Valley submarket was 0.2% at
the end of the third quarter 2021.
- 17031-17037 Green Drive, located in the City of Industry, CA, within the LA – San
Gabriel Valley submarket for $13.8 million, or $270 per square foot. The low coverage site
contains a 51,000 square foot building on 3.6
acres of land, fully leased to two tenants at rental
rates estimated to be 40% below market rates. Upon lease
expiration, the Company intends to drive cash flow growth through
value-add repositioning. The initial 3.8% unlevered cash
yield is projected to grow to a stabilized unlevered cash
yield on total investment of 5.4%.
- 13512 Marlay Avenue, located in Fontana, CA, within the highly desirable
Inland Empire – West submarket for $51.0
million, or $256 per square foot. The 199,363
square foot, modern, single tenant industrial warehouse on
10.1 acres of land, is fully leased at a rental rate
estimated to be approximately 40% below market rates. The
initial 3.2% unlevered cash yield is projected to grow to a
stabilized unlevered cash yield on total investment of 5.1%.
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.
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 288 properties with approximately 36.1 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.