Rexford Industrial Announces $46 Million of Investment Activity
- Year-to-date investments total $1.2 billion
- Unique access to off-market opportunities
- Favorable cash flow and net asset value growth
- Highly selective approach to capital allocation
- Substantial embedded internal growth and low leverage balance sheet
- None.
– Completed Three Industrial Property Acquisitions within Prime Infill Southern California Submarkets –
– Year-to Date Investments total
"Rexford Industrial's investment activity demonstrates the Company's unique access to well-located, off-market opportunities and ability to capitalize upon dynamic market conditions to drive favorable cash flow and net asset value growth," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "The Company continues to leverage its value-add expertise and proprietary sourcing advantage within infill
In July and August, through off-market transactions, the Company acquired:
- 2500 Thompson Street,
Long Beach , located in the LA – South Bay submarket for , or$20.3 million per square foot or$115 per land square foot. The 6.1 acre site encompasses three buildings totaling 174,691 square feet leased to a single tenant at rents estimated to be$76 40% below current market rates. The investment generates an initial unlevered cash yield of5.3% . According to CBRE, the vacancy rate in the 206 million square foot LA – South Bay submarket was1.6% at the end of the second quarter 2023.
- 422 Rosecrans Avenue,
Gardena , located in the LA – South Bay submarket for , or$2.9 million per land square foot. The 0.4 acre site adds to an immediately adjacent in-process Rexford Industrial redevelopment site and completes the assemblage of 6.3 total acres of land in the high demand South Bay submarket. The redevelopment features a 57,000 square foot cross-dock building and a large, secured yard for container storage. The total project is projected to generate a$152 5.3% unlevered cash yield on total investment.
- 14650 Hoover Street,
Westminster , located in the OC – West submarket for , or$23.0 million per square foot. The 59,679 square foot Class A, single tenant building is situated on 2.9 acres of land and is subject to a short-term sale leaseback. In conjunction with the acquisition, the existing tenant pre-leased the Rexford Industrial property at 17311 Nichols Lane located in the OC – West submarket, which is being repositioned into a highly-functional, 114,912 square foot industrial property. The combined estimated investment to achieve stabilization for both the Hoover Street and Nichols Lane properties is$385 and is projected to generate an aggregate$45.0 million 7.5% unlevered stabilized cash yield. Individually, the Hoover Street property is projected to generate a5.1% unlevered stabilized cash yield, and the Nichols Lane property is projected to generate a10.3% unlevered stabilized cash yield. According to CBRE, the vacancy rate in the 42 million square foot OC – West submarket was0.8% at the end of the second quarter 2023.
About Rexford Industrial
Rexford Industrial creates value by investing in, operating and redeveloping industrial properties throughout infill
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
Contact:
investorrelations@rexfordindustrial.com
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SOURCE Rexford Industrial Realty, Inc.