LOS ANGELES--(BUSINESS WIRE)--Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE:REXR), a real estate investment trust focused on owning and operating industrial properties located in Southern California infill markets, today announced the acquisition of two industrial properties containing 176,978 rentable square feet, for an aggregate purchase price of approximately $21.9 million.
“With these two acquisitions, both of which are 100% occupied, Rexford Industrial continues to demonstrate its ability to source and close well-located functional industrial properties in our core infill Southern California markets” said Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “Our proprietary sourcing capabilities, deep relationships and ability to close in a short time-frame provide us significant competitive advantages, enabling us to grow our portfolio in an accretive manner. Year-to-date, we have acquired eight properties containing approximately 748,000 square feet, representing a total investment of $76.0 million. Since our initial public offering in the second half of 2013, we have acquired 17 properties containing approximately 1.7 million square feet of industrial space, representing a 30% increase of our owned portfolio since our initial public offering.”
Crescent Bay Property
In May 2014, Rexford Industrial acquired 20531 Crescent Bay Drive, a 46,178 square foot industrial building situated on 2.47 acres, for $6.5 million, or $140 per square foot. The Crescent Bay industrial building is located in Lake Forest, California, within the South Orange County submarket, and is 100% leased through 2016 at rents well below current market value. The property is situated between the I-5, I-405, SR-133, and SR-241 freeways and is immediately adjacent to the central Irvine commercial business district. According to CBRE, the vacancy rate in the South Orange County submarket continues to fall and stood at 3.8% at the end of Q1 2014, with the overall Orange County market at 2.6% at the end of Q1 2014. Funding for the acquisition was provided by availability under the Company’s line of credit.
San Fernando Property
In May 2014, Rexford Industrial acquired 2980 & 2990 North San Fernando Boulevard, a 130,800 square foot property consisting of two industrial buildings occupied by a single tenant situated on 5.86 acres for $15.4 million, or $118 per square foot. The property is located in Burbank, California, within the San Fernando Valley, and is 100% occupied. The property has direct access and frontage to the I-5 freeway. The tenant, who has four years remaining on its lease, has utilized the facility for more than 50 years and has made significant capital investments to the facility. Rexford Industrial assumed a $10.3 million loan, with a 5.088% interest rate, that matures in July 2015. The remainder of the purchase price was funded with availability under the Company’s line of credit. According to CBRE, the vacancy rate in the San Fernando Valley submarket stood at 1.3% at the end of Q1 2014, with the overall Greater Los Angeles vacancy rate at 2.4% at the end of Q1 2014.
About Rexford Industrial
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns interests in 74 properties with approximately 8.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.
For additional information, visit www.rexfordindustrial.com.
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 U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.