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Rexford Industrial Realty, Inc. (the “Company” or “Rexford Industrial”) (NYSE: REXR), a real estate investment trust focused on creating value by investing in and operating industrial properties located throughout southern California today announced the acquisition of seven industrial properties for a total purchase price of $660.9 million. The purchases were financed using a combination of cash on hand, proceeds from equity forward settlements and the Company’s line of credit.

“These investments illustrate Rexford Industrial’s ability to leverage its exclusive market access and unique regional advantage within Southern California, the nation’s most in-demand and least vacant industrial market. Our year-to-date investments of $1.6 billion, approximately 85% of which were acquired through off-market or soft-branded transactions, are expected to deliver stabilized investment returns significantly above market and drive growth cash flow accretive,” said Howard Schwimmer and Michael Frankel, the company’s co-chief executives. “Our pipeline of more than $500 million in incremental investments through contract or accepted offer, combined with our low-leverage balance sheet and significant organic growth initiatives, creates a well depth of value creation opportunities positioned to generate long-term value for our shareholders.”

In June and July, the Company acquired:

• A six-building industrial project located at 6221 and 6251 Archibald Avenue and 14301, 14319, 14337 and 14326 Limonite Avenue in Eastvale, located in the Inland Empire – West submarket for $470.0 million, or $445 per square foot . Located on 49.7 acres, the newly constructed 1,057,419 square foot industrial complex is 71% leased and includes buildings ranging from 48,315 square feet to 501,649 square feet with minimum clear heights of 30 to 40 feet. Located near seven assets owned by Rexford Industrial, the investment expands the company’s presence and scale of operations in this highly sought-after industrial submarket. The initial unleveraged cash return of 3.5% is expected to reach a stabilized unleveraged cash return on total investment of 4.0%, increasing over time by contractual annual increments of 4.0 % and more. According to CBRE, the vacancy rate in the 321 million square foot Inland Empire – West submarket was 0.1% at the end of the first quarter of 2022.

• 4325 Etiwanda Avenue, Jurupa Valley, located in the Inland Empire – West submarket, through an off-market transaction of $47.5 million, or $382 per square foot. The 124,258 square foot Class A building on approximately 6.0 acres is leased to a single tenant at an estimated rent approximately 85% below current market rates. The Company expects to renew the existing tenant or re-let at market rates when the lease expires. The investment is expected to generate a stabilized unleveraged cash return of 4.5% on the total investment.

• 3935-3949 Heritage Oak Court, Simi Valley, located in the LA–Ventura County submarket, through an off-market transaction for $56.4 million, or $302 per square foot. Acquired through a short-term sale-leaseback, the two-tenant, 186,726-square-foot Class A building is located on 10.9 acres and leased at an estimated rent approximately 35% below rental rates current market. At the expiration of the lease, the Company plans to renew the existing tenants or re-let at market rates according to a value-added repositioning plan. The initial unleveraged cash return of 3.4% is expected to reach a stabilized unleveraged cash return on the total investment of 5.4%. According to CBRE, the vacancy rate in the 67 million square foot LA–Ventura County submarket was 0.6% at the end of the first quarter of 2022.

• 3547-3555 Voyager Street, Torrance, located in the LA – South Bay submarket, through an off-market transaction for $20.9 million or $162 per square foot of land. The 3.0 acre covered lot contains a 60,248 square foot multi-tenant industrial complex. Following the expiry of the leases, the Company intends to redevelop the site. The investment generates an initial unleveraged cash return of 3.0% and is expected to achieve a stabilized unleveraged cash return on the total investment of 4.6%. According to CBRE, the vacancy rate in the 219 million square foot LA – South Bay submarket was 0.6% at the end of the first quarter of 2022.

• 400 W Rosecrans Avenue, Los Angeles, located in the LA – South Bay submarket for $8.5 million, or $193 per square foot of land. The vacant 28,006 square foot building is located on 1.0 acres in the popular South Bay submarket. The investment is expected to generate a stabilized unleveraged return of 5.2% on the total investment.

• 620 E Anaheim Street, Los Angeles, located in the LA – South Bay submarket for $17.1 million, or $495 per square foot. The low-coverage vacant 34,555 square foot building on approximately 2.0 acres is strategically located adjacent to the Ports of Los Angeles and Long Beach and offers a large, secure yard. The investment is expected to generate a stabilized unleveraged return of 4.3% on the total investment.

• 6996 and 7044 Bandini Boulevard, Commerce, located in the LA – Central submarket, through an off-market transaction totaling $40.5 million, or $170 per square foot of land. The property comprises two contiguous parcels on 5.5 acres fronting I-5 and is 100% leased to a single tenant at an estimated rent of approximately 60% below market. Upon expiration of the lease, the Company intends to generate accretive cash flow growth through the renewal of the existing tenant or future redevelopment. The investment is expected to generate a stabilized, debt-free cash yield of 4.8% on the total investment. According to CBRE, the vacancy rate in the 271 million square foot LA – Central submarket was 0.7% at the end of the first quarter of 2022.

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