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 a four-building industrial complex for approximately $7.66 million and the disposition of one property for a total of approximately $2.5 million. The acquisition was funded with proceeds from the sale and cash on hand.
“These transactions demonstrate our ability to execute our growth strategy and opportunistically recycle capital into value-add industrial properties within our target infill submarkets,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “We are pleased that we are able to utilize our deep market relationships to quickly put disposition proceeds to work into an attractive off-market acquisition with value creation opportunities, particularly within high-demand, supply constrained infill submarkets such as the San Gabriel Valley. We expect that our planned improvements will enhance the marketability of this asset and enable higher rents upon releasing. We are pleased with our acquisition pace so far in 2016 and remain focused on driving long-term shareholder returns.”
The Company acquired 10750-10826 Lower Azusa Road in El Monte, a submarket of Los Angeles’ San Gabriel Valley, for $7.66 million, or approximately $97.00 per square foot. The four multi-tenant industrial buildings contain 79,050 square feet on 3.12 acres of land and are currently 100% occupied. Current rents are below market and near term roll is expected to enable the Company to complete cosmetic upgrades and resolve deferred maintenance, which are expected to drive higher rents upon re-tenanting. The high-traffic, high-demand location on a major thoroughfare is consistent with other strong-performing multi-tenant projects owned by the Company. According to CBRE, the vacancy rate in the 149 million square foot San Gabriel Valley submarket was 0.8% at the end of the first quarter 2016.
Separately, the Company sold 6010 N. Paramount Boulevard, a 16,534 square foot building located in Long Beach, California, a submarket of Los Angeles’ South Bay, for $2.5 million, or approximately $150 per square foot. The sale proceeds were used in a tax deferred exchange contributed towards the El Monte acquisition.
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 131 properties with approximately 13.8 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet.
For additional information, visit www.rexfordindustrial.com.
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