Press Release Details

- Adds 660,254 Square Feet of Industrial Property Within High-Demand Infill Southern California Locations
- Year-to-Date Acquisitions Total $420 Million

LOS ANGELES, June 24, 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, announced the acquisition of five industrial properties comprising 660,254 square feet of improvements on 28.8 acres of land for an aggregate purchase price of $188.9 million. The acquisitions were funded using a combination of cash-on-hand and proceeds from the Company's previously executed forward equity offerings.

"Rexford Industrial continues to leverage our proprietary access to the nation's most highly sought-after industrial property market within infill Southern California. Unprecedented tenant demand continues to intensify, driven by the post-pandemic economic resurgence and e-commerce related impacts that disproportionately benefit our last-mile, Southern California industrial market. With infill Southern California occupancy near full capacity amidst a deep, incurable supply-demand imbalance, we believe these investments are well-positioned to drive favorable cash flow growth as we execute our value-creation strategies," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "Year-to-date, we have completed $420 million of acquisitions with over $600 million of additional investments under contract or LOI. We are well-positioned with a low-leverage balance sheet and substantial liquidity to drive shareholder value through accretive internal and external growth."      

During June, the Company acquired the following properties:

• 2425-2535 E. 12th Street located in Los Angeles within the Los Angeles – Central submarket for $93.6 million or $363 per square foot. The recently repositioned industrial campus comprises 257,976 square feet of improvements on 7.5 acres of land. Located adjacent to the Arts District in downtown Los Angeles, the high-image property caters to high-end creative-industrial, e-commerce and traditional distribution-related tenants. The property is 96% leased and offers premium functionality across 11 tenant spaces with 24-foot warehouse clearance and dock-high loading. The investment is expected to generate an initial stabilized unlevered yield of 4.9% on total investment, with the potential for favorable cash flow growth thereafter. According to CBRE, the vacancy rate in the 275 million square foot Los Angeles – Central submarket was 1.8% at the end of the first quarter 2021.
   
• 19951 Mariner Avenue, located in Torrance, within the Los Angeles – South Bay submarket for $27.4 million or $307 per square foot. Acquired through a lightly-marketed transaction, the high-profile, 89,272 square foot industrial building serves as a corporate headquarters situated on 4.2 acres of land in a premier last-mile location. Leased long-term, the building features prime industrial functionality, including 27-foot warehouse clearance, dock-high loading and an oversized yard. The initial stabilized unlevered yield on total investment is 5.3%, growing thereafter with 3% annual contractual rental rate increases.
   
• 2555 E. Del Amo Boulevard, located in Rancho Dominguez, within the Los Angeles – South Bay submarket for $13.5 million or $174 per square foot. The two, fully-leased single-tenant industrial buildings comprise 77,758 square feet of improvements on 3.2 acres of land. The investment provides the potential for future value-add repositioning with favorable, by-right trailer and outdoor storage zoning. The initial unlevered yield on total investment is 3.8% and is expected to grow to over 6.3% after repositioning with modest improvements into a low-coverage industrial facility.
  
  According to CBRE, the vacancy rate in the 218 million square foot Los Angeles – South Bay submarket was 0.8% at the end of the first quarter 2021.
   
• An industrial property located within the Los Angeles – Greater San Fernando Valley submarket for $27.3 million or $87 per land square foot. Acquired through an off-market transaction, the single-tenant sale-lease-back comprises approximately 100,000 square feet of improvements on over 7.0 acres. The property provides favorable freeway access, proximity to Burbank Airport and the potential for future value-add redevelopment. The investment generates an initial 4.4% stabilized unlevered yield on total investment, growing over time with 3% contractual annual rent increases.
   
• 29120 Commerce Center Drive, located in Valencia within the Los Angeles – Greater San Fernando Valley submarket for $27.1 million or $200 per square foot. Acquired through an off-market transaction, the fully-leased, two-tenant industrial building comprises 135,258 square feet of improvements on 6.9 acres. The property provides superior functionality featuring 30-foot warehouse clearance, extensive dock-high loading and favorable proximity to freeway access. The initial unlevered yield on total investment is 3.4% and is expected to grow to over 4.7% as in-place leases at below-market rental rates expire and are rolled to higher market rates. 
  
  According to CBRE, the vacancy rate in the 182 million square foot Los Angeles – Greater San Fernando Valley submarket was 2.4% at the end of the first 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 266 properties with approximately 33.0 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:
Kosta Karmaniolas
310-691-5475
kkarmaniolas@rexfordindustrial.com

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SOURCE Rexford Industrial Realty, Inc.