LOS ANGELES, Jan. 3, 2022
/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 eight industrial properties for an aggregate
purchase price of $270 million. The
acquisitions were funded using cash on hand and proceeds
from forward equity settlements. For the full year 2021, the
Company acquired $1.9 billion
of industrial properties, bringing the Company's total
portfolio to 296 properties comprising approximately
37.1 million square feet within prime infill Southern California "last-mile"
submarkets.
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"These eight investments, acquired through off-market and
lightly marketed transactions, deliver substantial value
creation and result from 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, highest demand and
highest-barrier industrial property market," stated Howard
Schwimmer and Michael Frankel,
Co-Chief Executive Officers of the Company. "Our $1.9 billion
of investments completed in 2021 are indicative of Rexford's
substantial go-forward growth opportunity, given the unique
position we hold in 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 $400 million
of additional investments under contract or accepted offer, plus a
broad range of internal growth initiatives under-way,
our low-leverage, fortress-like balance
sheet supports the expansion of our best-in-class
portfolio and our ability to generate above-market cash flow
growth and long-term value creation for our
stakeholders."
In December, through off-market and lightly
marketed transactions, the Company acquired:
- A property located in the western portion of the City of Industry, CA, within the LA – San
Gabriel Valley submarket for $28.6
million, or $86 per land
square foot. The 7.6-acre site contains a single tenant 111,927
square foot building acquired through a multi-year sale-leaseback.
Upon lease expiration, the Company intends to execute a
redevelopment of the site. The initial 3.5% unlevered cash yield is
projected to grow to a stabilized unlevered cash yield on total
investment of approximately 5.0%. According to CBRE, the vacancy
rate in the 159 million square-foot San
Gabriel Valley submarket was 0.2% at the end of the third
quarter 2021.
- 2391-2393 Bateman Avenue, located in Irwindale, within the LA – San Gabriel Valley
submarket for $23.1 million, or
$352 per square foot. The 65,605
square foot, single tenant Class-A industrial facility is situated
on 3.4 acres of land. The property is subject to a long-term
sale leaseback with an initial unlevered cash yield on total
investment of 4.0%, with contractual 3.0% annual rent increases
through the lease term.
- 1020 Bixby Drive, located in the City
of Industry, within the LA – San Gabriel Valley submarket
for $16.4 million, or $287 per square foot. The 56,915 square
foot warehouse building is fully leased at a rental rate
estimated to be approximately 30% 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 3.6% unlevered cash yield is projected to grow to a
stabilized unlevered cash yield on total investment of 4.5%.
- 2800 Casitas Avenue, located in Los Angeles,
within the LA – Greater San Fernando Valley
submarket for $43.0 million, or
$368 per square foot. The 5.7-acre site contains a 117,000
square foot, two-tenant industrial building leased at rental
rates estimated to be approximately 60% below
market rates. Upon near-term lease expiration, the Company
intends to perform value-add repositioning, upgrading the
building to a state-of-the-art
last-mile warehouse/distribution facility.
The investment is projected to generate a 4.5% stabilized
unlevered cash yield on total investment. According to CBRE, the
vacancy rate in the 180 million square-foot Greater San
Fernando Valley submarket was 1.1% at the end of the
third quarter 2021.
- 4240 W. 190th Street, located
in Torrance, within the LA – South Bay submarket for
$75.3 million, or $149 per land
square foot. The fully leased, 307,000 square
foot, two-tenant industrial building is currently leased at
rental rates estimated to be 40% below market rates. Upon
lease expiration, the Company plans to redevelop the 11.6-acre site
into a best-in-class, single-tenant logistics facility. The
initial 3.0% 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 218
million square-foot LA - South Bay submarket was 0.6% at the end of
the third quarter 2021.
- 8911 Aviation Boulevard, located in Inglewood, within the LA – South Bay submarket
for $32.0 million, or $183 per land square foot. The 4.0-acre covered
land site contains 100,000 square feet of buildings, leased to a
single tenant located immediately adjacent to the Los Angeles International Airport. Following
the expiration of the current long-term lease, the Company
intends to redevelop the site by constructing two new,
best-in-class logistics buildings. The initial unlevered cash yield
is 4.7%.
- 3071 E. Coronado Street, located in Anaheim, within
the Orange County – North
submarket for $28.0 million,
or $131 per land square foot. The 4.9-acre land
site will be immediately redeveloped by constructing a
new 106,925 square foot building featuring 36' clear
height. Upon lease-up, the investment is projected to generate
a 4.7% stabilized unlevered cash yield on total
investment. According to CBRE, the vacancy rate in
the 115 million square-foot Orange County – North submarket
was 0.9% at the end of the third quarter 2021.
- 1168 Sherborn Boulevard, located in Corona, within the Inland Empire – West
submarket for $23.4 million, or approximately
$295 per square foot. The 79,515 square
foot building was acquired in a long-term sale-leaseback
transaction with in-place rent estimated to be 25% below market
rates. The initial 3.5% unlevered cash yield is projected
to grow over time driven by contractual 3.75% annual rent
escalations. 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 296 properties with approximately 37.1 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.