Rexford Industrial Realty, Inc. announced the acquisition of six industrial properties for an aggregate purchase price of $152.7 million. The purchases were funded using a combination of cash on hand and the Company's line of credit. In April and May, through off-market and lightly marketed transactions, the Company acquired: 7815 Van Nuys Boulevard, Panorama City, located within the LA – San Fernando Valley submarket for $25 million, or $175 per land square foot.

Upon lease expirations, the Company plans to remove existing improvements and construct a new 77,000 square foot, Class-A industrial building. The investment is projected to generate a 4.7% unlevered cash yield on total investment upon initial stabilization. According to CBRE, the vacancy rate in the 181 million square foot LA – San Fernando Valley submarket was 0.5% at the end of the first quarter 2022.

900-920 Allen Avenue, Glendale, located within the LA – San Fernando Valley submarket for $25 million, or $364 per square foot. The property contains two industrial buildings comprising 68,630 square feet situated on 3.3 acres of land. The investment generates an initial 4.0% unlevered cash yield on total investment, growing over time by 3.0% annual contractual rent increases and provides the potential for future value-add redevelopment.

1154 Holt Boulevard, Ontario, located within the Inland Empire – West submarket for $14.2 million, or $404 per square foot. Acquired through a short-term sale-lease-back, the newly constructed, single tenant, 35,000 square foot building, situated on 1.7 acres of land, is located near the Ontario International Airport. Upon lease expiration, the Company intends to re-lease at market rent.

The investment is projected to generate a 3.9% unlevered cash yield on total investment upon stabilization. According to CBRE, the vacancy rate in the 321 million square foot Inland Empire - West submarket was 0.1% at the end of the first quarter 2022. 1550-1600 Champagne Avenue, Ontario, located within the Inland Empire – West submarket for $46.9 million, or $377 per square foot.

The Class A, two-building 124,243 square foot property, situated on 6.4 acres of land, is leased at rents estimated to be 50% below current market rates. Upon lease expiration, the Company intends to drive accretive cash flow growth through re-leasing at market rent. The investment generates an initial 2.1% unlevered cash yield that is projected to grow to an unlevered stabilized cash yield on total investment of over 5.0%.

10131 Banana Avenue, Fontana, located within the Inland Empire – West submarket for $26.2 million, or $109 per land square foot. The 5.5-acre industrial outdoor storage site is 92% leased at rents estimated to be 40% below current market rates. Upon lease expirations, the Company plans to redevelop the property by constructing a 104,000 square foot Class-A, low coverage logistics building.

The initial 1.3% unlevered cash yield is projected to grow to an unlevered cash yield on total investment of 4.8% upon stabilization. 13535 Larwin Circle, Santa Fe Springs, located within the LA – Mid-Counties submarket for $15.5 million, or $277 per square foot. The 56,011 square foot single-tenant building, situated on 2.5 acres of land, is leased at a rate estimated to be 60% below current market rates.

The investment generates an initial 2.5% unlevered cash yield, which is projected to grow to an unlevered stabilized cash yield on total investment of 6.6% through either the renewal of the in-place tenant or a value-add repositioning of the property. According to CBRE, the vacancy rate in the 111 million square foot LA - Mid-Counties submarket was 0.1% at the end of the first quarter 2022.