– Completed Two Industrial
Investments Within Prime Infill Southern California Submarket
–
– Year-to Date Investments Total $1.4 Billion –
LOS
ANGELES, Oct. 26, 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 investment activity of
$245.0 million that was
funded using proceeds from forward equity settlements and cash
on hand.
"These investments demonstrate Rexford Industrial's ability to
leverage our deep, proprietary access to significant value-creation
opportunities within our target infill Southern California industrial property
markets," stated Howard Schwimmer and Michael
Frankel, Co-Chief Executive Officers of the Company. "The
Company continues to capitalize upon dynamic market conditions to
generate accretive FFO per share and net asset value growth through
our value-add investment program. In addition to the $1.4 billion of investments completed
year-to-date, the Company currently has a near-term pipeline
comprising approximately $100 million
of new investments under contract or accepted offer. Rexford
Industrial remains well-positioned with a low-leverage,
best-in-class balance sheet, providing the Company protection from
general economic uncertainty while also enabling the Company to
opportunistically capitalize upon accretive internal and external
growth opportunities that drive long-term stakeholder value."
The Company acquired the fee simple interest in a 100% leased
property at 15801 West 1st Street, Irwindale, located in the LA – San Gabriel
Valley submarket, through an off-market transaction, for
$120.0 million, $121 per building square foot or $37 per land square foot. The 993,142 square foot
facility, situated on a 75-acre industrially zoned site, is located
within the high-demand City of
Irwindale and provides high-visibility freeway frontage on
the heavily trafficked I-210 freeway. The property is leased to a
deeply entrenched tenant with an eight-year lease term subject to
long-term extension options. The investment provides favorable cash
flow with an initial 5.6% unlevered cash yield, growing by annual
contractual rent increases, plus the potential future value-add
opportunity to redevelop the site into a modern, state-of-the-art
industrial campus following lease expiration. In conjunction with
the acquisition, the Company issued a $125.0
million loan to the seller securitized by an adjacent
150-acre industrial development site. The five-year, fixed rate
loan has an effective interest rate of 8.0% and includes a right of
first offer for the Company to acquire the underlying industrial
development site in the future. The combined $245.0 million investment comprising the
aforementioned fee simple interest and loan is projected to
generate an aggregate 6.8% initial unlevered stabilized cash yield.
According to CBRE, the vacancy rate in the 161 million square foot
LA – San Gabriel Valley submarket was 1.5% at the end of the third
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 372 properties with
approximately 46.0 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.