– Acquire six properties for $218.4 million within Prime Infill Southern California submarkets –
– Year-to-date total investments of $993 million –
LOS ANGELES , June 21, 2022 /PRNewswire/ — Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust focused on creating value through investing in and operating industrial properties throughout Southern California, today announced the acquisition of six commercial lots for a total purchase price of $218.4 million. The purchases were funded with a combination of cash and the Company’s line of credit.
“Rexford Industrial continues to leverage its differentiated sourcing advantage and value-added expertise in infill Southern California, the country’s most desirable industrial market, with utilization rates essentially at full capacity and an irremediable imbalance between supply and demand. Tenant demand for Rexford Industrial’s quality, irreplaceable portfolio remains at historically high levels, as evidenced by nearly 1 million square feet of leases completed in April and May at rental spreads of 86% and 63% on a GAAP and cash basis, respectively.” , specified Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “Our year-to-date investments, of which over 85% were acquired through over-the-counter or lightly marked transactions, plus our pipeline of over 700 million dollars of additional investments under contract or accepted bid, are expected to generate returns well in excess of the market and drive favorable cash flow growth as we execute on our value creation strategies. Additionally, our significant internal growth initiatives to create value, coupled with our fortress-like balance sheet and substantial cash position, position Rexford Industrial to drive superior long-term value creation for our shareholders.”
In June the company acquired:
- 14350 Arminta street, panoramic citywithin the submarket LA – Greater San Fernando Valley for $8.4 millionor $463 per square foot. The 18,147 square foot building on a 1.0 acre lot is adjacent to three Rexford Industrial assets. The property is leased to a single tenant at an estimated rent of approximately 30% below current market rents. Upon expiration of the lease, the Company plans to extend the existing tenant or re-let at market rates following a value-added repositioning plan. The initial unleveraged cash yield of 2.7% is expected to grow to a stabilized unleveraged cash yield on the total investment of 4.5%. According to CBRE, the vacancy rate in the 181 million square foot LA – Greater San Fernando Valley submarket was 0.5% at the end of the first quarter of 2022.
- 29125 Avenue Paine, Valencialocated in the LA – Greater San Fernando Valley submarket, through an over-the-counter transaction for $45.0 millionor $256 per square foot. The 175,897 square foot, 9.0 acre Class A building is leased to a single tenant at a rent estimated to be approximately 30% below current market rates. The Company plans to extend the existing tenant or re-let at market rates after the lease expires. The initial unleveraged cash return of 3.2% is expected to grow to an unlevered stabilized cash return on the total investment of 4.5%.
- 2400 Marine Avenue, Redondo Beachlocated in the LA – South Bay submarket through an off-market transaction for $30.0 millionor $600 per square foot. The 50,000 square foot, fully leased, four tenant property on 2.6 acres includes a last mile distribution center and creative industrial space serving South Bay’s beachfront communities. The investment generates an initial unleveraged cash return of 5.2%. 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.
- 14527 and 14434 San Pedro Street, los Angeleslocated in the LA – South Bay submarket through an off-market transaction for $49.1 millionor $146 per lot square foot. The 121,066 square foot, low coverage building on 7.7 acres is strategically located in close proximity to the los Angeles International Airport and to the ports of los Angeles and Long Beach. Upon expiration of the short-term leaseback, the Company intends to transform the site into a best-in-class low-coverage logistics and industrial open storage facility. The investment is expected to generate an unlevered stabilized cash return of 7.3% on total investment.
- 20900 Normandy Avenue, torrancelocated in the LA – South Bay submarket through an off-market transaction for $39.9 millionor $540 per square foot. The 74,038-square-foot, fully-let, four-tenant, 3.6-acre Class A building is adjacent to a Rexford Industrial asset and is leased at rents estimated to be approximately 40% below current market rates. The company plans to drive cash flow growth through lease renewals or new leases at market rates. The investment generates an initial unleveraged cash return of 2.4% which is expected to grow to an unlevered stabilized cash return on the total investment of 4.3%.
- 15771 Red Hill Avenue, Tustinsettled in the submarket OC – Airport, through an over-the-counter transaction for $46.0 millionor $177 per lot square foot. The 6.0 acre covered lot includes a 96,534 square foot three tenant building. Upon expiry of the current long-term leases, the Company intends to redevelop the site. The investment generates an initial unleveraged cash return of 5.1%. According to CBRE, the vacancy rate in the 68 million square foot Greater Airport Area submarket was 1.6% at the end of the first quarter of 2022.
About Rexford Industrial
Rexford Industrial creates value through investment in, operation and rehabilitation of industrial properties throughout the infill space Southern California, the fourth largest industrial market in the world and consistently the highest demand and lowest supply market in the United States. The firm’s highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and wealth management capabilities. Rexford Industrial’s high-quality, irreplaceable portfolio includes 328 properties with approximately 39.3 million rentable square feet, occupied by a stable and diverse tenant base. Structured as a Real Estate Investment Trust (REIT) and listed on the New York Stock Exchange under the ticker “REXR”, Rexford Industrial is a member of the S&P MidCap 400 Index. Visit www.rexfordindustrial.com for more information.
This press release may contain forward-looking statements within the meaning of the federal securities laws that 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 address expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar statements regarding matters that are not historical facts. In some instances, you can identify forward-looking statements by using forward-looking terminology such as “may”, “will”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “estimates”, ” predicts” or “potentially” or the negative of those words and phrases or similar words or phrases that are or are indicative of predictions of future events or trends and which are not related solely to historical matters. While forward-looking statements reflect the Company’s good 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 forward-looking statements, see the Company’s reports and other filings with the US Securities and Exchange Commission, including the Company’s annual report 10- K for the past year December 31, 2021, and the company’s latest 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.
424 256 2153 extension 401
SOURCE Rexford Industrial Realty, Inc.