Rexford Industrial Acquires Three Industrial Properties for $33.8 million; Sells One Property for $4.5 million
LOS ANGELES, April 10, 2018 /PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, today announced the acquisition of three industrial properties totaling approximately $33.8 million plus the disposition of one property for $4.5 million. The acquisitions were funded through a combination of cash on hand, use of Rexford's existing line of credit, as well as the re-investment of disposition proceeds.
"Our transaction activity demonstrates Rexford's value-driven investment capability focused on infill Southern California, the nation's largest and most attractive industrial market. Our extensive local research and relationship-driven originations process enabled the acquisition of these three assets through off-market transactions," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "With these three acquisitions we have added an attractive value-add investment to our portfolio as well as two fully-leased properties which provide immediate cashflow and opportunities for longer-term NOI growth. As we progress through 2018 and beyond, we remain focused on executing both our internal and external growth strategies to drive cash flow and to create long term value for our shareholders."
The Company acquired 851 Lawrence Drive, located in Thousand Oaks in the Ventura submarket, for $6.6 million or $132 per square foot. The property contains a vacant 49,976 square foot building on 4.87 acres of land. The Company intends to demise the existing structure into two units and construct a new 32,000 square foot building on excess land. According to CBRE, the vacancy rate in the 63 million square foot Ventura submarket was 1.9% at the end of the fourth quarter 2017.
The Company acquired 1581 North Main Street, located in Orange in the Orange County-North submarket, for $7.2 million or $180 per square foot. The property contains 39,661 square feet on 1.80 acres of land and is currently 100% leased to a single tenant, though it presents future value-add potential as the building is divisible into three units. The highly functional property features abundant dock-high loading and 24 foot clear height. After the implementation of functional and cosmetic upgrades, the Company anticipates the potential to increase cash flow upon lease renewal or retenanting. According to CBRE, the vacancy rate in the 113 million square foot Orange County-North submarket was 1.1% at the end of the fourth quarter 2017.
The Company acquired 4039 Calle Platino, located in Oceanside in the San Diego-North County submarket, for $20.0 million or $140 per square foot. The property contains 143,274 square feet on 9.54 acres of land and is currently 100% leased to four tenants at in-place rents that are meaningfully below market. The building also presents future value-add potential as the spaces may be further divided in the future. The highly functional property features 24 foot clear height and substantive dock high loading. The Company intends to complete deferred maintenance and functional and cosmetic upgrades to enable the attainment of higher market rents. According to CBRE, the vacancy rate in the 52 million square foot San Diego-North County submarket was 4.3% at the end of the fourth quarter 2017.
The Company sold 200-220 South Grand Avenue, located in Santa Ana in the Orange County-Airport submarket, for approximately $4.5 million or $165 per square foot. The multi-tenant industrial building is 100% occupied and contains 27,200 square feet on 1.63 acres of land. The property was sold to a private owner. Proceeds from the disposition were recycled in a tax deferred 1031 exchange to fund a portion of the Calle Platino acquisition.
About Rexford Industrial
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 156 properties with approximately 19.0 million rentable square feet and manages an additional 20 properties with approximately 1.2 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, 2017. 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.