– Three Industrial Property Acquisitions within
Prime Infill Southern California Submarkets –
– Year-to-Date Investments total $762
Million –
LOS
ANGELES, April 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 three
industrial property acquisitions for an aggregate purchase
price of $357.2 million. The
Company also announced the disposition of one property for
$17.0 million. The
acquisitions were funded using a combination of cash on
hand, proceeds from forward equity settlements and the
Company's recent public bond offering.
"These investments demonstrate Rexford Industrial's ability
to capitalize upon today's dynamic market conditions to create
value and drive accretive cash flow growth through
our value-add expertise and proprietary
access to the infill Southern California industrial
market, the largest and highest demand industrial market in the
U.S. and the fourth largest industrial market in the world," stated
Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "As the nation's largest pure-play, U.S. focused
industrial REIT, Rexford Industrial is well-positioned to drive
accretive internal cash flow growth as we roll our substantially
below-market leases to higher market rents and through
the lease-up of our repositioning and redevelopment
projects currently in-process. In addition, with
approximately 2% market share within the highly-fragmented infill
Southern California industrial
market and with a near-term investment pipeline of over
$125 million of acquisitions under
contract or accepted offer, the Company continues to leverage
its local, sharp-shooter advantage to expand our infill
Southern California industrial
property portfolio in a highly accretive manner.
Bolstered by our low-leverage, best-in-class balance
sheet, the Company is favorably positioned to deliver
long-term value creation for our shareholders."
In February and March, through off-market and lightly marketed
transactions, the Company acquired:
- 3520 Challenger Street, Torrance, located in the LA – South Bay
submarket for $14.2 million, or
$132 per land square foot. The 2.5
acre industrial zoned, covered land site is improved with a light
industrial R&D office building leased long-term to a single
tenant, generating an initial unlevered cash yield of 6.3%, growing
annually by contractual 3.0% rent increases. According to CBRE, the
vacancy rate in the 221 million square foot LA – South Bay
submarket was 0.8% at the end of the fourth quarter 2022.
- 9000 Airport Boulevard, Los
Angeles, located in the LA – South Bay submarket for
$143.0 million, or $179 per land square foot. The 18.4 acre
industrial zoned site is located immediately adjacent to
Los Angeles International Airport,
a premium location providing exceptional access to the western
portion of greater Los Angeles.
Leased to a single credit tenant through a three-year sale
leaseback with 4% embedded annual rental rate increases, the site
provides the Company unique optionality to drive value creation
through the redevelopment of the property into a Class A industrial
campus or to reposition the site for industrial outdoor storage
uses. The investment generates an initial 5.4% unlevered cash yield
projected to grow to an unlevered stabilized cash yield on total
investment of 6.3%.
- 9223 and 9323 Balboa Avenue and
4285 Ponderosa Avenue, San Diego,
located in the Central San Diego
submarket for $200.0 million or
$388 per square foot. The 26.1 acre
industrial zoned covered land site is currently improved with
industrial, research and development and office uses. Situated on a
prime, high-image location that is ideally positioned as a
prospective distribution hub serving greater San Diego County with immediate access to five
major freeways, the investment presents the potential for an
accretive future redevelopment opportunity. The properties are
subject to sale leasebacks that allow the Company to harvest
current cash flow generating an initial 5.3% unlevered cash yield
projected to grow to an aggregate unlevered stabilized cash yield
on total investment of 7.4% upon redevelopment of a class-A
industrial property in combination with divestiture of the research
and development and office buildings, which are leased to a single
tenant subject to long-term, triple net leases. According to CBRE,
the vacancy rate in the 66 million square foot Central San Diego submarket was 2.6% at the
end of the fourth quarter 2022.
In March, the Company disposed of the following property:
- 8101-8117 Orion Avenue, Van
Nuys, located in the Greater San Fernando Valley submarket
for $17.0 million or $351 per square foot. The multi-tenant building
totaling 48,394 square feet was 93% occupied at the time of sale.
The unlevered IRR on the transaction to the Company is 16.8%.
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 362 properties with
approximately 44.0 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.