Rexford Industrial Realty, Inc. announced the acquisition of eight industrial properties for an aggregate purchase price of $205.2 million. The purchases were funded using cash on hand. 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 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.