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Rexford Industrial Announces $137.6 Million of Transaction Activity
"These investments demonstrate Rexford's ability to leverage our value-add expertise and proprietary access to the nation's strongest and most highly-valued industrial market to generate substantially above-market cash yields and return on investment," said
In October and November, the Company acquired:
21515 Western Avenue, located in Torrance, within the LA – South Baysubmarket for $19.0 million, or $108per land square foot. Acquired through a lightly-marketed transaction, the Company intends to redevelop the existing 56,199 square foot retail use building on 4.0 acres of industrially zoned land into an 85,520 square foot Class A warehouse and distribution facility. The investment is projected to generate a 4.8% unlevered stabilized yield on total cost. According to CBRE, the vacancy rate in the 218 million square-foot LA – South Baysubmarket was 0.6% at the end of the third quarter 2021. 12027 Greenstone Avenue, located in Santa Fe Springs, within the LA – Mid-Counties submarket for $8.1 million, or $81per land square foot. The 2.3-acre industrial outdoor storage site is immediately adjacent to two existing Rexford owned storage sites and is leased at a rent estimated to be approximately 80% below market rent. Upon lease expiration, the Company intends to drive cash flow growth through value-add repositioning into a modern container storage yard. The investment is expected to generate a 5.8% stabilized unlevered cash yield. According to CBRE, the vacancy rate in the 112 million square-foot LA – Mid-Counties submarket was 0.2% at the end of the third quarter 2021. 6027 Eastern Avenue, located in Commerce, CA, within the LA – Central submarket for $23.3 million, or $138per land square foot. The Company intends to redevelop the 3.9-acre site by constructing two state-of-the-art buildings totaling 92,800 square feet of warehouse distribution space, featuring 32-foot clear heights, superior functionality and secured yards. The stabilized unlevered cash yield is projected to be approximately 4.6% upon lease-up. According to CBRE, the vacancy rate in the 273 million square-foot LA – Central submarket was 1.9% at the end of the third quarter 2021. 340-344 Bonnie Circle, located in Corona, CA, within the Inland Empire – West submarket for $27.0 million, or $276per square foot. Acquired through an off-market transaction, the 98,000 square foot, single tenant building on 5.2 acres of land is fully leased at rent estimated to be approximately 45% below market. Upon lease expiration, the Company intends to grow cash flow through the renewal of the existing tenant at a market rent or by re-tenanting after execution of modest value-add improvements. The initial unlevered 2.7% cash yield is projected to grow to a stabilized yield on total investment of 4.8%. According to CBRE, the vacancy rate in the 319 million square-foot Inland Empire – West submarket was 0.8% at the end of the third quarter 2021. 14100 Vine Place, located in Cerritos, CA, within the LA – Mid-Counties submarket for $48.5 million, or $407per square foot. Acquired through a lightly-marketed transaction, the 34% covered 8.1-acre site contains one-single tenant 119,145 square foot building, subject to a short-term lease. Upon near-term expiration of the lease, the Company intends to execute value-add repositioning of the property to include additional dock high loading and the paving of excess land to create extensive outdoor storage capacity, positioning the property to achieve premium market rents. The stabilized unlevered cash yield is projected to be approximately 4.4%. According to CBRE, the vacancy rate in the 112 million square-foot LA – Mid-Counties submarket was 0.2% at the end of the third quarter 2021.
In November, the Company disposed of the following property:
2670-2674 Walnut Streetand 89-91 San Gabriel Boulevard, located in Pasadena, within the Greater San Gabriel Valleysubmarket for $11.7 million, or $370per square foot. The four-building, 31,619 square foot property on 1.0 acres of land was fully leased at the time of sale. The unlevered IRR on the investment is 20.7%. Proceeds from the sale were reinvested into the acquisition of 340-344 Bonnie Circle.
About Rexford Industrial
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
424 256 2153 ext. 401
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