LOS ANGELES, Nov. 29, 2017 /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 four industrial properties for approximately $69.6 million. The acquisitions were funded using cash on hand, draws on the Company’s line of credit and proceeds from two dispositions totaling $30.6 million.
“We continue to capitalize upon Rexford’s exceptional growth opportunity by acquiring prime industrial properties in the highest-demand industrial market in the country – infill Southern California,” stated Howard Schwimmer and Michael Frankel, Co-Chief Executive Officers of the Company. “We continue to recycle capital into accretive high-quality, leased industrial product such as 687 Eucalyptus Avenue, completing a tax deferred exchange from two dispositions, one of which was a vacant property. We are also pleased to complement this activity by acquiring value-add investments with below-market in-place leases including Gardena, a two-building leased portfolio, and 8542 Slauson Avenue, a 4.24 acre paved land site. Year to date, we have exceeded $600 million in acquisitions, and we continue to see favorable opportunities to execute our internal and external growth strategies to drive cash flow and shareholder value.”
The Company acquired 687 Eucalyptus Avenue, located in Inglewood in the Los Angeles – West Los Angeles/South Bay submarket for $53.9 million, or $376 per square foot. The single tenant industrial building contains 143,436 square feet on 6.79 acres of land and is 100% leased to Federal Express Corporation. The recently completed build-to-suit features 32-foot clear height, ESFR sprinklers and LEED certification. The property is the closest modern distribution facility to service last-mile e-commerce delivery within this densely populated West Los Angeles submarket. Industrial supply is extremely limited in West Los Angeles, having been cannibalized by demand for creative office space and multifamily development, resulting in increased building conversions and removal of the industrial supply.
Also in the Los Angeles – South Bay submarket, the Company acquired a two-property portfolio consisting of 15401 S. Figueroa Street and 13225 S. Western Avenue located in Gardena for $6.7 million, or $112 per square foot. 15401 S. Figueroa Street contains 38,584 square feet on 1.62 acres of land and 13225 S. Western Avenue contains 21,010 square feet on 0.95 acres of land. The two single-tenant buildings are both 100% leased at substantially below-market rents to