Rexford Industrial Realty, Inc. Announces Acquisition of Four Industrial Properties
September 13, 2021 at 04:15 pm EDT
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Rexford Industrial Realty, Inc. announced the acquisition of four industrial properties comprising 837,500 square feet of improvements, for an aggregate purchase price of $250.5 million. The acquisitions were funded using cash on hand and proceeds from forward equity settlements. In late August and early September, the Company acquired the following properties: 1801 E. St. Andrew Place, located in Santa Ana, within the Orange County – Airport submarket for $105.3 million, or $115 per land square foot. The 100% leased, covered land site comprises a 370,375 square foot office/warehousing building on 21.3 acres, located adjacent to the CA-55 freeway with direct access to the I-5 and I-405 freeways. Fully leased long-term to two credit tenants, the investment is projected to generate an initial 5.6% unlevered cash yield, with approximately 2.5% average contractual annual rent increases. Upon expiration of in-place leases, the Company intends to redevelop the site into modern, Class A logistics buildings. According to CBRE, the vacancy rate in the 68 million square-foot Orange County – Airport submarket was 2.6% at the end of the second quarter 2021. 2401-2421 N. Glassell Street, located in Orange, within the Orange County – North submarket for $70.0 million, or $133 per land square foot. Acquired through an off-market transaction, the covered land site comprises a 12.5 acre property containing four office buildings totaling 191,125 square feet, leased long-term to a single credit tenant. The site is located in a prime infill Orange County location with immediate access to the CA-57, CA-55, CA-91, CA-22, and I-5 freeways. The initial unlevered cash yield is projected at 4.9% with contractual annual rent increases of 3.0%. The Company intends to redevelop the property upon expiration of the in-place lease by constructing new Class A industrial buildings. According to CBRE, the vacancy rate in the 115 million square-foot Orange County – North submarket was 1.4% at the end of the second quarter 2021. 2390-2444 N. American Way, located in Orange, within the Orange County – North submarket for $16.7 million or $96 per land square foot. Acquired through an off-market transaction, the 4.0 acre vacant site will be redeveloped into two state-of-the-art industrial buildings totaling approximately 96,100 square feet, featuring 32' clear heights. Upon lease-up, the stabilized unlevered cash yield on total investment is projected to be 5.2%. 500 S. Dupont Avenue, located in Ontario, CA, within the Inland Empire – West submarket for $58.5 million or $212 per building square foot. Acquired through an off-market transaction, the fully leased, 276,000 square foot, single-tenant building is located on 11.1 acres in the heart of the high-demand Inland Empire-West submarket. The investment generates an initial 3.0% unlevered cash yield growing to a projected stabilized yield of 5.8% over time as the current in-place rent, estimated to be 40% below-market, is rolled to a higher market rent upon renewal or re-tenanting. According to CBRE, the vacancy rate in the 316 million square-foot Inland Empire – West submarket was 1.0% at the end of the second quarter 2021.
Rexford Industrial Realty, Inc. is a self-administered and self-managed full-service real estate investment trust (REIT). The Company is focused on owning, operating and acquiring industrial properties in Southern California infill markets. It acquires, owns, improves, redevelops, leases, and manages industrial real estate principally located in Southern California infill markets, through Rexford Industrial Realty, L.P. (Operating Partnership) and its subsidiaries. It also acquires or provides mortgage debt secured by industrial property. It provides property management services and leasing services to related parties and third-party property owners. Its property management services include performing property inspections, monitoring repairs and maintenance, negotiating vendor contracts, maintaining tenant relations and providing financial and accounting oversight. The Company's portfolio consists of over 422 properties with approximately 49.1 million rentable square feet.