LOS ANGELES, April 11, 2019 /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 an industrial property in an UPREIT transaction whereby the seller contributed the property to the Company's operating partnership, Rexford Industrial Realty, L.P. (the "Operating Partnership"), in exchange for equity in the form of newly issued 4.43937% cumulative redeemable convertible preferred operating partnership units in the Operating Partnership (the "Series 1 CPOP Units"). The Series 1 CPOP Units are more particularly described in the Company's Current Report on Form 8-K filed with the SEC on the date of this press release.
"We continue to leverage Rexford's research-driven originations platform and value-add capabilities to source and execute on attractive investment opportunities in Southern California's highly fragmented infill industrial markets. In this case, we were able to provide a tax-efficient solution to the seller by structuring the sale as an UPREIT contribution," stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. "East 15th Street is located in Downtown Los Angeles, strategically positioned adjacent to the arts district and the Santa Monica (10) freeway. As we progress through 2019, we continue to see favorable investment opportunities to grow our portfolio of high-quality industrial assets with the capacity to enhance cash flow and to create value for our shareholders."
In an off-market transaction the Company acquired 1515 East 15th Street, located in Downtown Los Angeles within the LA – Central submarket, a two-story vacant industrial property containing 238,000 square feet on 2.34 acres of land that features 10 dock-high loading doors and subterranean parking. The Company intends to capitalize upon the opportunity to either complete minor renovations and lease to a single tenant or to seek full industrial-use redevelopment of the site. According to CBRE, the vacancy rate in the 288 million square foot LA – Central submarket was 1.5% at the end of the fourth quarter 2018.
In exchange for this property, the seller received 593,960 Series 1 CPOP Units, which are convertible by the holder at any time or by the Company beginning five years after issuance, in each case, into common units of the Operating Partnership on a one-for-one basis. The transaction was priced based upon a stock price of $31.56, equal to the trailing 30-day average closing price of the Company's common stock as of the letter of intent date. The Series 1 CPOP Units are entitled to cumulative cash distributions at a rate of 4.43937% per year using a per unit stated value of $45.50952 (a 44.2% premium to the $31.56 per share described above), all as more particularly described in the Current Report on Form 8-K filed on the date hereof.
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 182 properties with approximately 22.4 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.
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, 2017 and the Current Report on Form 8-K filed with the SEC on the date of this press release. 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.