– Acquires Ten Industrial Properties within
Prime Infill Southern California Submarkets –
– Increases Portfolio Square Footage by 15% Over Prior Year to 42.4
Million Square Feet –
LOS
ANGELES, Jan. 5, 2023 /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 throughout infill Southern California, today announced the
acquisition of ten industrial properties for an aggregate
purchase price of $336.2 million. The transactions were
funded using a combination of cash on hand and proceeds from
forward equity settlements.
"Rexford Industrial's proprietary sourcing advantage
and value add expertise continue to deliver accretive
current and long-term portfolio cash flow growth within infill
Southern California,
the largest and highest demand industrial market in
the United States. Our
$2.4 billion of acquisitions
completed in 2022 demonstrate Rexford Industrial's ability to drive
substantial, above-market value creation and return on investment,
while highlighting our unique position as the nation's largest
pure-play U.S.-focused industrial REIT," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "With an extensive pipeline of prospective NOI growth
driven by significant mark-to-market of in-place leases, value-add
repositioning and redevelopment projects, plus $400 million of additional accretive investments
under contract or accepted offer, the Company is well positioned
with a low-leverage balance sheet to continue generating superior
value creation for our shareholders."
In the fourth quarter of 2022, through off-market and lightly
marketed transactions, the Company acquired:
- 3131 E. Harcourt Street and
18031 S. Susana Road, Rancho
Dominguez, located within the LA – South Bay submarket for
$27.5 million, or $208 per land square foot. The 3.0 acre site is
located immediately adjacent to a 2.5 acre site acquired in
August 2022. Upon near-term lease
expiration, the Company intends to redevelop the combined sites
into a low coverage logistics facility containing a 34,000 square
foot building and oversized container storage yard. The investment
generates an initial 2.2% unlevered cash yield projected to grow to
an unlevered stabilized cash yield on total investment of 5.6%.
According to CBRE, the vacancy rate in the 221 million square foot
LA – South Bay submarket was 1.2% at the end of the third quarter
2022.
- 14400 S. Figueroa Street,
Los Angeles, located in the LA –
South Bay submarket for $49.0
million, or $234 per land
square foot. The 4.8 acre site is located immediately adjacent to a
1.0 acre site acquired in July 2022.
The Company intends to reposition the combined site into a low
coverage logistics facility containing a 57,000 square foot cross
dock building and oversized container storage yard. The investment
is projected to generate a 5.1% unlevered stabilized cash yield on
total investment.
- A five-property portfolio located across the LA – South Bay
submarket and Inland Empire – West submarket for $198.1 million, or $382 per square foot. The properties are located
at 2130-2140 E. Del Amo Boulevard and 20455 S. Reeves Avenue in
Carson, 19145 Gramercy Place in
Torrance, and 14874 Jurupa Avenue
and 10600 Mulberry Avenue in Fontana. In aggregate, the portfolio
totals 518,931 square feet on 24.6 acres of land and is 100% leased
to six tenants. The investment generates an aggregate initial 5.0%
unlevered cash yield projected to grow to an aggregate unlevered
stabilized cash yield on total investment of 5.5% through
re-leasing at market rents and annual contractual rent increases.
According to CBRE, the vacancy rate in the 329 million square foot
Inland Empire – West submarket was 0.4% as of third quarter
2022.
- 755 Trademark Circle, Corona, located in the Inland Empire –
West submarket for $10.5 million, or
$305 per square foot. The 34,427
square foot building situated on 1.6 acres is leased to a single
tenant through a long-term sale leaseback. The investment generates
an initial unlevered yield of 5.3%, growing over time through 4.0%
contractual annual rent increases.
- 4500 Azusa Canyon, Irwindale,
located in the LA – San Gabriel Valley submarket for $40.0 million, or $116 per land square foot. The 7.9 acre low
coverage site is improved with 77,266 square feet of buildings and
leased to a single tenant through a sale leaseback. The investment
generates an initial unlevered cash yield of 5.3%, growing over
time through 3.0% contractual rent increases. According to CBRE,
the vacancy rate in the 160 million square foot LA – San Gabriel
Valley submarket was 1.2% at the end of the third quarter 2022.
- 7817 Haskell Avenue, Van Nuys,
located in the LA – San Fernando Valley submarket for $11.1 million, or $128 per land square foot. The 2.0 acre
industrial outdoor storage site is 100% leased to a single tenant.
The investment generates an initial unlevered cash yield of 5.3%
projected to grow to a 5.9% unlevered stabilized cash yield on
total investment. According to CBRE, the vacancy rate in the 177
million square foot LA – San Fernando Valley submarket was 0.5% at
the end of the third quarter 2022.
About Rexford Industrial
Rexford Industrial creates value by investing in, operating and
redeveloping industrial properties throughout infill Southern California, the world's fourth
largest industrial market and consistently the highest-demand,
lowest supply market in the nation. The Company's highly
differentiated strategy enables internal and external growth
opportunities through its proprietary value creation and asset
management capabilities. Rexford Industrial's high-quality,
irreplaceable portfolio comprises 356 properties with
approximately 42.4 million rentable square feet occupied
by a stable and diverse tenant base. Structured as a real estate
investment trust (REIT) listed on the New York Stock Exchange under
the ticker "REXR," Rexford Industrial is an S&P MidCap 400
Index member. For more information, please 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,
2021, 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:
Aric Chang
Senior Vice President, Investor Relations and Capital Markets
310.734.6952
achang@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.