Rexford Industrial Announces $218 million of Acquisitions
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– Year-to-Date Investments Total $993 Million –
LOS ANGELES ,
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In June, the Company acquired:
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14350 Arminta Street ,Panorama City , located within the LA –Greater San Fernando Valley submarket for$8.4 million , or$463 per square foot. The 18,147 square foot building situated on 1.0 acre is adjacent to threeRexford Industrial owned assets. The property is leased to a single tenant at rent estimated to be approximately 30% below current market rental rates. Upon lease expiration, the Company plans to renew the existing tenant or re-lease at market rates following a value-add repositioning plan. The initial 2.7% unlevered cash yield is projected to grow to an unlevered stabilized cash yield on total investment of 4.5%. According to CBRE, the vacancy rate in the 181 million square foot LA –Greater San Fernando Valley submarket was 0.5% at the end of the first quarter 2022. - 29125 Avenue Paine,
Valencia , located within the LA –Greater San Fernando Valley submarket, through an off-market transaction for$45.0 million , or$256 per square foot. The 175,897 square foot Class A building on 9.0 acres is leased to a single tenant at rent estimated to be approximately 30% below current market rates. The Company plans to renew the existing tenant or re-lease at market rates upon lease expiration. The initial 3.2% unlevered cash yield is projected to grow to an unlevered stabilized cash yield on total investment of 4.5%. -
2400 Marine Avenue ,Redondo Beach , located within the LA –South Bay submarket, through an off-market transaction for$30.0 million , or$600 per square foot. The 50,000 square foot fully leased, four-tenant property situated on 2.6 acres contains a last-mile distribution center and creative industrial space serving theSouth Bay beach communities. The investment generates an initial 5.2% unlevered cash yield. According to CBRE, the vacancy rate in the 219 million square foot LA –South Bay submarket was 0.6% at the end of the first quarter 2022. -
14527 and 14434 San Pedro Street ,Los Angeles , located within the LA –South Bay submarket, through an off-market transaction for$49.1 million , or$146 per land square foot. The 121,066 square foot low coverage building situated on 7.7 acres is strategically located within close proximity to theLos Angeles International Airport and to the ports ofLos Angeles andLong Beach . Upon expiration of the short-term leaseback, the Company intends to reposition the site into a best-in-class low coverage logistics and industrial outdoor storage facility. The investment is projected to generate a 7.3% unlevered stabilized cash yield on total investment. -
20900 Normandie Avenue ,Torrance , located within the LA –South Bay submarket, through an off-market transaction for$39.9 million , or$540 per square foot. The 74,038 square foot, fully occupied, Class-A four-tenant building situated on 3.6 acres is adjacent to aRexford Industrial -owned asset and is leased at rents estimated to be approximately 40% below current market rates. The Company plans to drive cash flow growth through lease renewal or re-tenanting at market rates. The investment generates an initial 2.4% unlevered cash yield that is projected to grow to an unlevered stabilized cash yield on total investment of 4.3%. -
15771 Red Hill Avenue ,Tustin , located within the OC – Airport submarket, through an off-market transaction for$46.0 million , or$177 per land square foot. The 6.0 acre covered land site contains a 96,534 square foot, three-tenant building. Following the expiration of the current long-term leases, the Company intends to redevelop the site. The investment generates an initial 5.1% unlevered cash yield. According to CBRE, the vacancy rate in the 68 million square foot Greater Airport Area submarket was 1.6% at the end of the first quarter 2022.
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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:
Investor Relations:
424 256 2153 ext. 401
investorrelations@rexfordindustrial.com
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