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 for a total of approximately $21.0 million. The acquisitions were funded with cash on hand and borrowings under the Company’s line of credit, as well as the assumption of a $9.9 million first mortgage loan secured by one of the properties.
“Rexford Industrial continues to differentiate the Company in its ability to leverage deep market relationships and knowledge to originate attractive value-add opportunities with favorable in-place cash flow,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “After completing value-add functional and deferred maintenance renovations, both properties are expected to produce above-market stabilized yields and to add substantial value to our portfolio. With these acquisitions, the Company has added 20 high-quality investments representing 2 million square feet to our portfolio over the course of 2015.”
In December, Rexford Industrial acquired 1065 E. Walnut Street, located in Carson California, for $16.7 million, or approximately $97 per square foot. As a part of the acquisition, Rexford Industrial assumed a $9.9 million first mortgage loan, which carries a 4.55% interest rate and matures in 2019. The property is comprised of one 28’–30’ clear height cold storage industrial building, containing 172,420 square feet on 7.85 acres of land. The building is 100% leased under new five-year lease extensions to two long-term tenants with co-terminus leases, providing future flexibility for renovation and potential re-tenanting of the building into a traditional single-tenant dock-high distribution facility. Rexford Industrial has also assumed responsibility for certain tenant improvement allowances under the new lease terms as well as other deferred maintenance. According to CBRE, the vacancy rate in the 218 million square foot Los Angeles South Bay submarket was 0.8% at the end of the third quarter 2015.
Rexford also acquired 12247 Lakeland Road, located in Santa Fe Springs, California for $4.3 million, or approximately $171 per square foot. 12247 Lakeland Road is comprised of one single-tenant industrial building containing 24,875 square feet on 2.52 acres of land, which includes 50,000 square feet of excess paved land. Based upon the overall land area, the purchase price equates to approximately land value for the property. The building, acquired from a private seller, is vacant with the excess paved land leased through March 2016. The Company’s strategy includes the value-add resolving of deferred maintenance and functional obsolescence to deliver high-quality, high-demand industrial space with above standard dock-high loading and highly-sought-after excess land. Additionally, the Company owns the adjacent 2.85 acre asset at 10950 Norwalk Boulevard, which provides future optionality to consolidate and redevelop the two properties at a later time. According to CBRE, the vacancy rate in the 109 million square foot Los Angeles Mid Counties submarket was 0.8% at the end of the third quarter 2015.
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 119 properties with approximately 11.9 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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