Press Release Details

LOS ANGELES, March 9, 2022 /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 throughout infill Southern California, today announced the acquisition of eight industrial properties for an aggregate purchase price of $205.2 million. The purchases were funded using cash on hand.

"These investments reflect our team's ability to leverage its regional sharpshooter advantage and value-add expertise to deepen our presence within infill Southern California, the nation's most sought-after industrial market, while generating substantially above-market return on investment," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "With over $500 million of additional investments under contract or accepted offer, plus a broad range of accretive internal growth initiatives under-way, we are well positioned with a low-leverage, fortress-like balance sheet to generate significant value-creation for our stakeholders."

In February and March, the Company acquired:

• 13700-13738 Slover Avenue, Fontana, located within the Inland Empire – West submarket, through a lightly-marketed transaction for $13.2 million, or $72 per land square foot. Upon near-term lease expiration, the Company intends to redevelop the 4.2 acre site by constructing a state-of-the art, 95,000 square foot single tenant warehouse building with high-visibility, Interstate-10 highway frontage. The investment is projected to generate a 6.6% unlevered stabilized cash yield on total investment. According to CBRE, the vacancy rate in the 320 million square foot Inland Empire – West submarket was 0.6% at the end of the fourth quarter 2021.
• 21415-21605 Plummer Street, Chatsworth, located within the LA – San Fernando Valley submarket, through an off-market transaction for $42.0 million, or $106 per land square foot. Upon lease expirations, the Company intends to redevelop the 9.1 acre industrial-zoned site by removing the existing 231,769 square feet of legacy flex/office improvements and constructing two Class A, 32-foot-clear warehouse buildings totaling 182,000 square feet. The investment generates an initial 5.9% unlevered cash yield and provides future value-add redevelopment opportunity. According to CBRE, the vacancy rate in the 180 million square LA – San Fernando Valley submarket was 0.6% at the end of the fourth quarter 2021.
• 1501-1545 Rio Vista Avenue, Los Angeles, located within the LA – Central submarket, through an off-market transaction for $28.0 million, or $511 per square foot. The two Class A industrial buildings, comprising 54,777 square feet on 2.1 acres, are leased at rents estimated to be approximately 50% below current market rates. The Company intends to drive accretive cash flow growth through moderate property upgrades upon lease expirations and re-leasing at market rates. After near-term tenant turnover and leasing, the stabilized yield on total investment is projected to be approximately 3.8%. According to CBRE, the vacancy rate in the 271 million square foot LA – Central submarket was 0.7% at the end of the fourth quarter 2021.
• A portfolio consisting of four low-coverage industrial properties located at 14243 Bessemer Street in Van Nuys, 2970 E 50th Street in Vernon, 17011-17027 S Central Ave in Carson, and 2843 Benet Road in Oceanside, across the LA – San Fernando Valley, LA – Central, LA – South Bay and SD – North County submarkets for $65.0 million, or $431 per square foot, on average. In aggregate, the industrial properties comprise 150,700 square feet of improvements on 8.8 acres and are fully leased on long-term, absolute net leases. The investment generates an initial 3.6% unlevered stabilized cash yield. According to CBRE, the vacancy rates in the 219 million square foot LA – South Bay submarket and the 54 million square foot SD – North County submarket were 0.6% and 2.3% respectively, at the end of the fourth quarter 2021.
• An industrial complex within the Ventura County submarket, through an off-market sale-leaseback transaction for $57.0 million, or $199 per square foot. The three industrial buildings comprise 285,750 square feet of improvements on 15.0 acres. The investment generates a 4.3% unlevered stabilized cash yield, growing over time by 3.0% contractual annual rent increases. According to CBRE, the vacancy rate in the 67 million square foot Ventura County submarket was 0.6% at the end of the fourth quarter 2021.

About Rexford Industrial
Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand, lowest supply market in the nation. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities.  Rexford Industrial's high-quality, irreplaceable portfolio comprises 308 properties with approximately 38.1 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member.  For more information, please 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, 2021, 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.