LOS ANGELES, Jan. 22, 2018 /PRNewswire/ -- 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 single-tenant industrial property for approximately $11.4 million. The Company also sold a six-building industrial park for $11.4 million. The acquisition was funded through a combination of proceeds from the disposition and cash on hand.
"These transactions demonstrate our ability to source off-market, value-add investment opportunities in the supply constrained infill Southern California industrial market and to efficiently recycle our capital to enhance shareholder value," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "The 100% leased property we acquired provides an attractive initial cash return, with the longer term potential to raise substantially below-market in-place rents to higher market rents upon re-leasing or re-tenanting. Our ability to invest the sale proceeds through a tax-efficient 1031 exchange from a tenant- and management-intensive asset into a single-tenant property also drives incremental financial leverage and operating margins. As we progress through 2018 and beyond, we remain focused on executing both our internal and external growth strategies to drive cash flow and to create long term value for our shareholders."
The Company acquired 13971 Norton Avenue, located in Chino in the Inland Empire – West submarket, for $11.4 million or $110 per square foot. The property contains 103,208 square feet on 4.76 acres of land and is currently 100% leased to a single tenant. The property provides modern functionality and a flexible layout, offering the potential for single-tenant or three-tenant configuration. The Company plans to implement cosmetic and functional renovations upon lease renewal or re-tenanting to maximize the potential to increase rents to higher market rates. According to CBRE, the vacancy rate in the 287 million square foot Inland Empire – West submarket was 1.8% at the end of the fourth quarter 2017.
The Company sold 5637 East Arrow Highway & 8900-8980 North Benson Avenue in the Inland Empire-West submarket for approximately $11.4 million or $130 per square foot. The 55-unit, six-building facility was 93% occupied and contains 88,016 square feet on 5.18 acres of land. The property was sold to a private investor. Proceeds from the disposition were recycled in a tax deferred 1031 exchange to fund a portion of the Norton Avenue 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 151 properties with approximately 18.5 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.
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, 2016. 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.
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SOURCE Rexford Industrial Realty, Inc.