Rexford Industrial Realty, Inc. announced the acquisition of eight industrial properties for an aggregate purchase price of $270 million. The acquisitions were funded using cash on hand and proceeds from forward equity settlements. For the full year 2021, the Company acquired $1.9 billion of industrial properties, bringing the Company's total portfolio to 296 properties comprising approximately 37.1 million square feet within prime infill Southern California "last-mile" submarkets. In December, through off-market and lightly marketed transactions, the Company acquired: A property located in the western portion of the City of Industry, CA, within the LA – San Gabriel Valley submarket for $28.6 million, or $86 per land square foot. The 7.6-acre site contains a single tenant 111,927 square foot building acquired through a multi-year sale-leaseback. Upon lease expiration, the Company intends to execute a redevelopment of the site. The initial 3.5% unlevered cash yield is projected to grow to a stabilized unlevered cash yield on total investment of approximately 5.0%. According to CBRE, the vacancy rate in the 159 million square-foot San Gabriel Valley submarket was 0.2% at the end of the third quarter 2021. 2391-2393 Bateman Avenue, located in Irwindale, within the LA – San Gabriel Valley submarket for $23.1 million, or $352 per square foot. The 65,605 square foot, single tenant Class-A industrial facility is situated on 3.4 acres of land. The property is subject to a long-term sale leaseback with an initial unlevered cash yield on total investment of 4.0%, with contractual 3.0% annual rent increases through the lease term. 1020 Bixby Drive, located in the City of Industry, within the LA – San Gabriel Valley submarket for $16.4 million, or $287 per square foot. The 56,915 square foot warehouse building is fully leased at a rental rate estimated to be approximately 30% below market rates. Upon lease expiration, the Company intends to drive cash flow growth through either value-add repositioning and re-tenanting or through lease renewal at market rent. The initial 3.6% unlevered cash yield is projected to grow to a stabilized unlevered cash yield on total investment of 4.5%.
2800 Casitas Avenue, located in Los Angeles, within the LA – Greater San Fernando Valley submarket for $43.0 million, or $368 per square foot. The 5.7-acre site contains a 117,000 square foot, two-tenant industrial building leased at rental rates estimated to be approximately 60% below market rates. Upon near-term lease expiration, the Company intends to perform value-add repositioning, upgrading the building to a last-mile warehouse/distribution facility. The investment is projected to generate a 4.5% stabilized unlevered cash yield on total investment. According to CBRE, the vacancy rate in the 180 million square-foot Greater San Fernando Valley submarket was 1.1% at the end of the third quarter 2021. 4240 W. 190th Street, located in Torrance, within the LA – South Bay submarket for $75.3 million, or $149 per land square foot. The fully leased, 307,000 square foot, two-tenant industrial building is currently leased at rental rates estimated to be 40% below market rates. Upon lease expiration, the Company plans to redevelop the 11.6-acre site into a best-in-class, single-tenant logistics facility. The initial 3.0% unlevered cash yield is projected to grow to a stabilized unlevered cash yield on total investment of 5.1%. According to CBRE, the vacancy rate in the 218 million square-foot LA - South Bay submarket was 0.6% at the end of the third quarter 2021.