- Two industrial property acquisitions and one disposition
- Full year 2023 investments total $1.5
billion within prime infill Southern California submarkets
LOS
ANGELES, Jan. 4, 2024 /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 two industrial property
investments for an aggregate purchase price of $69.5 million and the disposition of one
property for $11.3 million. The
acquisitions were funded using proceeds from forward equity
settlements, cash on hand and 1031 disposition proceeds. For
the full year 2023, Rexford Industrial completed $1.5 billion of investments and currently
has a near-term pipeline comprising approximately $75
million of new investments under contract or accepted
offer.
"Rexford Industrial's investment activity highlights the
Company's continued ability to leverage its value-add expertise and
proprietary market access within infill Southern California to
drive substantial value creation," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of
the Company. "Rexford Industrial's low leverage balance sheet and
highly selective approach to capital allocation positions the
Company to drive long-term value creation through both
internal and external growth strategies."
In December, the Company acquired:
- 600-708 E. Vermont Avenue, Anaheim, located in the OC – North submarket,
for $57.0 million or $108 per land square foot. Following a short-term
leaseback, the Company intends to redevelop the 12.1-acre site into
a 264,000 square foot divisible Class A building. The value-add
investment is projected to generate a 6.7% unlevered stabilized
cash yield on total investment. According to CBRE, the vacancy rate
in the 117 million square foot OC – North submarket was 0.9% at the
end of the third quarter 2023.
- 11234 Rush Street, South El
Monte, located in the LA – San Gabriel Valley submarket, for
$12.5 million or $61 per land square foot through an off-market
transaction. The Company intends to redevelop the vacant 4.7-acre
land site into a 102,000 square foot Class A industrial building,
designed to accommodate up to four tenants. The investment is
projected to generate a 6.4% unlevered stabilized cash yield on
total investment. 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.
In December, the Company disposed of:
- 3720-3750 W. Warner Avenue, Santa
Ana, located in the OC – Airport submarket, for $11.3 million or $292 per square foot. The multi-tenant building,
totaling 38,643 square feet, was 100% occupied at the time of sale.
The unlevered IRR on the transaction to the Company is 28%.
Proceeds from the sale were reinvested into the acquisition of
600-708 E. Vermont Avenue.
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 373 properties with
approximately 45.8 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.