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 that it has acquired 605 8th Street, a 55,516 square foot industrial building located in San Fernando for $5.1 million, or $91 per square foot. The acquisition was funded with cash on hand. Additionally, the Company sold its 37,992 square foot industrial building located in Illinois for $1.8 million.
“This off-market acquisition represents another example of our deep local relationships and selective approach to growing our portfolio in the Greater San Fernando Valley submarket of Los Angeles,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “We purchased this high-quality building from an owner / occupant who is vacating the property. The Company expects to create value by resolving deferred maintenance and making functional enhancements including installation of dock high loading and modernization of current office space. We expect these improvements to position the property to command market-leading rents upon retenanting. Furthermore, with the disposition we announced today, we have fully realized our strategic vision of a 100% Southern California focused property portfolio.”
The 605 8th Street property is located in San Fernando within the Greater San Fernando Valley sub-market. The building is situated on land totaling 2.75 acres, features 24-foot clear ceiling heights with substantial useable yard area and is currently 65% occupied. The property is in a highly desirable location, positioned between the I-405, I-5, SR-118 freeways and is 10 minutes from the Burbank Airport. As of June 30, 2014, according to CBRE, the vacancy rate for industrial properties in the 172 million square foot Greater San Fernando Valley submarket stood at 1.3%.
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 88 properties with approximately 9.5 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.