– Completed Three Industrial Property
Acquisitions within Prime Infill Southern California Submarkets
–
– Year-to Date Investments total $1.2
Billion –
LOS
ANGELES, Sept. 6, 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 three
industrial property investments for an aggregate purchase price of
$46.2 million. The acquisitions were
funded using cash on hand.
"Rexford Industrial's investment activity demonstrates the
Company's unique access to well-located, off-market opportunities
and ability to capitalize upon dynamic market conditions to
drive favorable cash flow and net asset value growth," stated
Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "The Company continues to leverage its value-add
expertise and proprietary sourcing advantage within infill
Southern California, the largest
and highest demand industrial market in the U.S. and the fourth
largest market globally. The quality and accretive nature of our
investments year-to-date and within our near-term pipeline of over
$300 million of investments under
contract or accepted offer demonstrate our highly selective
approach to capital allocation. The Company is also favorably
situated with substantial embedded internal growth and a low
leverage balance sheet, positioning the Company to deliver
long-term value creation for shareholders."
In July and August, through off-market transactions, the Company
acquired:
- 2500 Thompson Street, Long
Beach, located in the LA – South Bay submarket for
$20.3 million, or $115 per square foot or $76 per land square foot. The 6.1 acre site
encompasses three buildings totaling 174,691 square feet leased to
a single tenant at rents estimated to be 40% below current market
rates. The investment generates an initial unlevered cash yield of
5.3%. According to CBRE, the vacancy rate in the 206 million square
foot LA – South Bay submarket was 1.6% at the end of the second
quarter 2023.
- 422 Rosecrans Avenue, Gardena,
located in the LA – South Bay submarket for $2.9 million, or $152 per land square foot. The 0.4 acre site adds
to an immediately adjacent in-process Rexford Industrial
redevelopment site and completes the assemblage of 6.3 total acres
of land in the high demand South Bay submarket. The redevelopment
features a 57,000 square foot cross-dock building and a large,
secured yard for container storage. The total project is projected
to generate a 5.3% unlevered cash yield on total investment.
- 14650 Hoover Street, Westminster, located in the OC – West
submarket for $23.0 million, or
$385 per square foot. The 59,679
square foot Class A, single tenant building is situated on 2.9
acres of land and is subject to a short-term sale leaseback. In
conjunction with the acquisition, the existing tenant pre-leased
the Rexford Industrial property at 17311 Nichols Lane located in
the OC – West submarket, which is being repositioned into a
highly-functional, 114,912 square foot industrial property. The
combined estimated investment to achieve stabilization for both the
Hoover Street and Nichols Lane properties is $45.0 million and is projected to generate an
aggregate 7.5% unlevered stabilized cash yield. Individually, the
Hoover Street property is projected to generate a 5.1% unlevered
stabilized cash yield, and the Nichols Lane property is projected
to generate a 10.3% unlevered stabilized cash yield. According to
CBRE, the vacancy rate in the 42 million square foot OC – West
submarket was 0.8% at the end of the second quarter 2023.
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 371 properties with
approximately 45.0 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, 2022. 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:
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.