LOS ANGELES, Sept. 13, 2021 /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 in Southern California infill markets, today announced the acquisition of four industrial properties comprising 837,500 square feet of improvements, for an aggregate purchase price of $250.5 million. The acquisitions were funded using cash on hand and proceeds from forward equity settlements.

"These investments demonstrate Rexford's unique access to supply-constrained infill Southern California, the nation's most sought-after industrial market," said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "Through our proprietary originations platform, we continue to leverage our deep local sharp-shooter advantage together with our value-add redevelopment expertise to enable superior return on investment and favorable cash flow growth. With over $1 billion of industrial property acquisitions completed within infill Southern California year-to-date and $375 million of additional investments under contract or accepted offer, the Company is well-positioned with a low-leverage, fortress-like balance sheet to create long-term shareholder value."

In late August and early September, the Company acquired the following properties:

• 1801 E. St. Andrew Place, located in Santa Ana, within the Orange County – Airport submarket for $105.3 million, or $115 per land square foot. The 100% leased, covered land site comprises a 370,375 square foot office/warehousing building on 21.3 acres, located adjacent to the CA-55 freeway with direct access to the I-5 and I-405 freeways. Fully leased long-term to two credit tenants, the investment is projected to generate an initial 5.6% unlevered cash yield, with approximately 2.5% average contractual annual rent increases. Upon expiration of in-place leases, the Company intends to redevelop the site into modern, Class A logistics buildings. According to CBRE, the vacancy rate in the 68 million square-foot Orange County – Airport submarket was 2.6% at the end of the second quarter 2021.
• 2401-2421 N. Glassell Street, located in Orange, within the Orange County – North submarket for $70.0 million, or $133 per land square foot. Acquired through an off-market transaction, the covered land site comprises a 12.5 acre property containing four office buildings totaling 191,125 square feet, leased long-term to a single credit tenant. The site is located in a prime infill Orange County location with immediate access to the CA-57, CA-55, CA-91, CA-22, and I-5 freeways. The initial unlevered cash yield is projected at 4.9% with contractual annual rent increases of 3.0%. The Company intends to redevelop the property upon expiration of the in-place lease by constructing new Class A industrial buildings. According to CBRE, the vacancy rate in the 115 million square-foot Orange County – North submarket was 1.4% at the end of the second quarter 2021.
• 2390-2444 N. American Way, located in Orange, within the Orange County – North submarket for $16.7 million or $96 per land square foot. Acquired through an off-market transaction, the 4.0 acre vacant site will be redeveloped into two state-of-the-art industrial buildings totaling approximately 96,100 square feet, featuring 32' clear heights. Upon lease-up, the stabilized unlevered cash yield on total investment is projected to be 5.2%.
• 500 S. Dupont Avenue, located in Ontario, CA, within the Inland Empire – West submarket for $58.5 million or $212 per building square foot. Acquired through an off-market transaction, the fully leased, 276,000 square foot, single-tenant building is located on 11.1 acres in the heart of the high-demand Inland Empire-West submarket. The investment generates an initial 3.0% unlevered cash yield growing to a projected stabilized yield of 5.8% over time as the current in-place rent, estimated to be 40% below-market, is rolled to a higher market rent upon renewal or re-tenanting. According to CBRE, the vacancy rate in the 316 million square-foot Inland Empire – West submarket was 1.0% at the end of the second quarter 2021.

About Rexford Industrial

Rexford Industrial, a real estate investment trust focused on creating value by investing in and operating industrial properties throughout Southern California infill markets, owns 277 properties with approximately 34.6 million rentable square feet and manages an additional 20 properties with approximately 1.0 million rentable square feet. For additional information, 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, 2020, and the Company's most recent Form 10-Q. 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:
Investor Relations:
Stephen Swett
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com

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SOURCE Rexford Industrial Realty, Inc.