Rexford Industrial Acquires Two Industrial Properties For $21.5 Million; Sells One Property For $1.7 Million
LOS ANGELES, May 1, 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 two industrial properties for a total investment of $21.5 million, and the disposition of one property for approximately $1.7 million. The acquisitions were funded through a combination of cash on hand, use of Rexford's existing line of credit, as well as the reinvestment of disposition proceeds.
"These transactions, one a leased investment and the other a vacant, value-add opportunity, further demonstrate our ability to source core and value-add investment opportunities within our target infill Southern California industrial markets at attractive yields," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "The leased property provides an attractive initial cash return, with longer term opportunities to reposition to higher market rents. The value-add acquisition was acquired off-market and is expected to stabilize with a strong cash yield. As we move forward through 2018 and beyond, Rexford Industrial is well-positioned to continue to execute on our internal and external growth strategies to create long term value for our shareholders."
The Company acquired 660 & 664 North Twin Oaks Valley Road, located in San Marcos, in the North San Diego County submarket, for $14.0 million or $144 per square foot. The property contains two 100% leased industrial buildings totaling 96,993 square feet, situated on 4.88 acres of land. The buildings are leased to an entrenched tenant and are divisible into multiple units. The property has extensive dock-high loading, a 180' shared truck court and substantial power, providing flexible functionality that appeals to a wide variety of businesses. The Company intends to either renew or re-tenant the property at the expiration of the in-place lease. According to CBRE, the vacancy rate in the 52 million square foot San Diego – North County submarket was 4.7% at the end of the first quarter 2018.
In an off-market acquisition, the Company also acquired 1580 West Carson Street, located in Long Beach, in the Los Angeles – South Bay submarket, for $7.5 million or $171 per square foot. The property contains a 28'-clear 43,787 square foot building on 2.52 acres and was vacated by the seller immediately prior to closing. Rexford plans to reposition the building, incorporating high-image offices and modern industrial attributes such as ESFR sprinklers and extensive dock-high loading. The property's location with direct access to the 405 & 710 freeways, is positioned well to capture demand from warehousing, manufacturing and E-commerce users. According to CBRE, the vacancy rate in the 223 million square foot Los Angeles – South Bay submarket was 0.8% at the end of the first quarter 2018.
The Company sold 6770 Central Avenue Building B, located in Riverside in the Inland Empire -- East submarket, for approximately $1.7 million or $142 per square foot. The vacant building contains 11,808 square feet, situated on 1.08 acres, and was sold to an owner user. Proceeds from the disposition of this non-core asset were recycled in a tax deferred 1031 exchange to fund a portion of the Carson Street 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 158 properties with approximately 19.1 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
View original content:http://www.prnewswire.com/news-releases/rexford-industrial-acquires-two-industrial-properties-for-21-5-million-sells-one-property-for-1-7-million-300639645.html
SOURCE Rexford Industrial Realty, Inc.