– Acquires seven properties for $339 million in Southern California Prime Infill Submarkets –
– Total investments since the beginning of the year $20.0 billion –
LOS ANGELES, September 7, 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 throughout Southern California, today announced the acquisition of seven industrial properties for an aggregate purchase price of $338.9 million. The purchases were financed using a combination of cash on hand and the Company’s line of credit.
“These investments demonstrate Rexford Industrial’s unique ability to create value and generate accretive cash flow growth by leveraging our value-added industrial property expertise and exclusive access to off-market investment opportunities. well-located in Southern California, the nation’s largest and most sought-after industrial market,” said Howard Schwimmer and Michael Frankel, co-Chief Executive Officers of the Company. “Our deep market penetration allows for a very selective approach to capital allocation, demonstrated by our $2.0 billion of investments since the beginning of the year and a pipeline of more than $200 million additional investments under contract or accepted offer, which should generate a stabilized return on investment well above market returns. The Company is favorably positioned with a low-leverage balance sheet to deliver long-term value creation to our shareholders through the execution of our internal and external growth strategies.”
In July, August and September, through off-market transactions, the Company acquired:
- 2880 E. Ana Street, Rancho Dominguezlocated in the LA–South Bay submarket for $34.6 million Where $213 per square foot of land. Following the expiration of the short-term lease, the Company intends to redevelop the 3.7-acre site into an industrial outdoor storage yard. The investment generates an initial unleveraged cash return of 4.1% and is expected to achieve a stabilized unleveraged cash return on the total investment of 5.2%. According to CBRE, the vacancy rate in the 220 million square foot LA – South Bay submarket was 0.9% at the end of the second quarter of 2022.
- 17909 and 17929 S. Susana Road, Rancho Dominguezlocated in the LA–South Bay submarket for $26.1 millionWhere $245 per square foot of land. The 57,376 square foot property, comprised of two buildings, is situated on 2.5 acres and leased at estimated rents 45% below current market rates. Upon expiration of the short-term sale-leaseback, the Company intends to redevelop the site into a best-in-class, low-coverage logistics facility. The investment generates an initial unleveraged cash return of 2.7% and is expected to achieve a stabilized unleveraged cash return on the total investment of 5.1%.
- 21022 – 21034 S. Figueroa StreetCarson, located in the LA–South Bay submarket for $24.2 millionWhere $473 per square foot. The 51,185 square foot single-tenant Class A building is located near the I-110 and I-405 freeways and the ports of Los Angeles and long beach. The investment is expected to generate a stabilized unleveraged cash return of 4.2% on the total investment.
- 3901 Via Oro, long beachlocated in the LA–South Bay submarket for $20.0 millionWhere $146 per square foot of land. Upon expiration of the lease, the Company intends to redevelop the fully occupied, industrial zoned site with a new 74,000 square foot Class A industrial building. The site offers immediate access to the I-405 and I-710 freeways and is strategically located near the ports of Los Angeles and long beach. The investment generates an initial unleveraged cash return of 4.3% and is expected to achieve a stabilized unleveraged cash return of 5.0% on the total investment.
- 920 E. Pacific Coast Highway, Wilmingtonlocated in the LA–South Bay submarket for $100.0 millionWhere $271 per square foot of land. The port-adjacent, low-coverage 148,186 square foot logistics facility is located on 8.5 acres along the Overweight Container Trucking Corridor and is leased to a single tenant under a sale-leaseback agreement to long term. The investment generates an initial unleveraged cash return of 4.1% on the total investment, increasing over time by 4.0% annual contractual increases.
- 6000-6052 and 6027-6029 Bandini Boulevard, Commerce and Bell, respectively, located in the LA – Central submarket for $91.5 millionWhere $501 per square foot. The two fully occupied Class A properties total 182,782 square feet on 10.1 acres and are leased at estimated rents 35% below current market rates. Upon lease expiration, the Company intends to generate accretive cash flow growth through renewal of existing tenants or re-letting following a value-added repositioning plan. The investment generates an initial unleveraged cash return of 2.4% and is expected to achieve a stabilized unleveraged cash return of 4.8% on the total investment. According to CBRE, the vacancy rate in the 271 million square foot LA – Central submarket was 0.8% at the end of the second quarter of 2022.
- A three-building industrial portfolio in the City of Industry, located in the San Gabriel Valley submarket for $42.5 millionWhere $374 per square foot. The 113,733 square foot portfolio of fully occupied, single-tenant Class A buildings is leased at estimated rents 50% below current market rates. The initial unleveraged cash return of 2.4% is expected to reach a stabilized unleveraged cash return on the total investment of 5.5%. According to CBRE, the vacancy rate in the 160 million square foot San Gabriel Valley submarket was 0.5% at the end of the second 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 344 properties with approximately 41.6 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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SOURCE Rexford Industrial