– Acquires seven properties for $661 million in Southern California Prime Infill Submarkets –
– Total investments since the beginning of the year $10.6 billion –
LOS ANGELES, July 19, 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 throughout Southern California, today announced the acquisition of seven industrial properties for an aggregate purchase price of $660.9 million. The purchases were financed using a combination of cash on hand, proceeds from equity forward settlements and the Company’s line of credit.
“These investments illustrate Rexford Industrial’s ability to capitalize on its exclusive market access and unique regional sniper advantage within the infill. Southern California, the most demanded and least vacant industrial market in the country. Our $1.6 billion year-to-date investments, approximately 85% of which were acquired through off-market or soft-branded transactions, are expected to deliver stabilized investment returns significantly above market and generate accretive cash flow growth,” said Howard Schwimmer and Michael Frankel, co-Chief Executive Officers of the Company. “Our pipeline of more $500 million additional investments under an accepted contract or offer, combined with our low leverage balance sheet and significant organic growth initiatives, create a deep well of value creation opportunities positioned for generate long-term value for our shareholders.”
In June and July, the Company acquired:
- A six-building industrial project located at 6221 and 6251 Archibald Avenue and 14301, 14319, 14337 and 14326 Limonite Avenue in Eastvale, located in the Inland Empire – West submarket for $470.0 millionWhere $445 per square foot. Located on 49.7 acres, the newly constructed 1,057,419 square foot industrial complex is 71% leased and includes buildings ranging from 48,315 square feet to 501,649 square feet with minimum clear heights of 30 to 40 feet. Located near seven assets owned by Rexford Industrial, the investment expands the company’s presence and scale of operations in this highly sought-after industrial submarket. The initial unleveraged cash return of 3.5% is expected to reach a stabilized unleveraged cash return on total investment of 4.0%, increasing over time by contractual annual increments of 4.0 % and more. According to CBRE, the vacancy rate in the 321 million square foot Inland Empire – West submarket was 0.1% at the end of the first quarter of 2022.
- 4325 Etiwanda Avenue, Jurupa Valley, located in the Inland Empire – West sub-market, through an off-market transaction for $47.5 millionWhere $382 per square foot. The 124,258 square foot Class A building on approximately 6.0 acres is leased to a single tenant at an estimated rent approximately 85% below current market rates. The Company expects to renew the existing tenant or re-let at market rates when the lease expires. The investment is expected to generate a stabilized unleveraged cash return of 4.5% on the total investment.
- 3935-3949 Heritage Oak Court, Simi Valleylocated in the LA – Ventura County sub-market, through an off-market transaction for $56.4 millionWhere $302 per square foot. Acquired through a short-term sale-leaseback, the two-tenant, 186,726-square-foot Class A building is located on 10.9 acres and leased at an estimated rent approximately 35% below rental rates current market. At the expiration of the lease, the Company plans to renew the existing tenants or re-let at market rates according to a value-added repositioning plan. The initial unleveraged cash return of 3.4% is expected to reach a stabilized unleveraged cash return on the total investment of 5.4%. According to CBRE, the vacancy rate in the 67 million square feet LA – Ventura County submarket was 0.6% at the end of the first quarter of 2022.
- 3547-3555 Voyager Street, Torrancelocated in the LA–South Bay submarket, through an off-market transaction for $20.9 million Where $162 per square foot of land. The 3.0 acre covered lot contains a 60,248 square foot multi-tenant industrial complex. Following the expiry of the leases, the Company intends to redevelop the site. The investment generates an initial unleveraged cash return of 3.0% and is expected to achieve a stabilized unleveraged cash return on the total investment of 4.6%. According to CBRE, the vacancy rate in the 219 million square foot LA – South Bay submarket was 0.6% at the end of the first quarter of 2022.
- 400 avenue Rosecrans W, Los Angeleslocated in the LA–South Bay submarket for $8.5 millionWhere $193 per square foot of land. The vacant 28,006 square foot building is located on 1.0 acres in the popular South Bay submarket. The investment is expected to generate a stabilized unleveraged return of 5.2% on the total investment.
- 620 E Anaheim Street, Los Angeleslocated in the LA–South Bay submarket for $17.1 millionWhere $495 per square foot. The vacant 34,555 square foot low-coverage building on approximately 2.0 acres is strategically located adjacent to the ports of Los Angeles and long beach and offers a large secure yard. The investment is expected to generate a stabilized unleveraged return of 4.3% on the total investment.
- 6996 and 7044 Bandini Boulevard, Commerce, located in the LA – Central submarket, through an off-market transaction totaling $40.5 millionWhere $170 per square foot of land. The property comprises two contiguous parcels on 5.5 acres fronting I-5 and is 100% leased to a single tenant at an estimated rent of approximately 60% below market. Upon expiration of the lease, the Company intends to generate accretive cash flow growth through the renewal of the existing tenant or future redevelopment. The investment is expected to generate a stabilized debt-free cash yield of 4.8% on the total investment. According to CBRE, the vacancy rate in the 271 million square foot LA – Central submarket was 0.7% at the end of the first quarter of 2022.
About Rexford Industrial
Rexford Industrial creates value by investing, operating and redeveloping industrial properties throughout the infill Southern California, the fourth largest industrial market in the world and still the market with the highest demand and lowest supply in the country. 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 and irreplaceable portfolio includes 335 properties with approximately 40.8 million habitable 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 symbol “REXR”, Rexford Industrial is a member of the S&P MidCap 400 Index. For more information, please visit www.rexfordindustrial.com.
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 results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking words such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “anticipate ‘, ‘believes’, ‘estimates’, ‘predicts’ or ‘potential’ or the negative form of such words and phrases or similar words or phrases which are predictions or indicate future events or trends and which do not relate solely to historical matters. Although forward-looking statements reflect the company’s good faith beliefs, assumptions and expectations, they are not guarantees of future performance. For further discussion of these and other factors that may that the Company’s future results will differ materially from any forward-looking statements, see the reports and other documents filed by the Company with the United States Securities and Exchange Commission, including the annual report of the Corporation on Form 10-K for the year ended the 31st of December, 2021, and the most recent Form 10-Q. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes.
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