In the first quarter of 2021, Rexford Industrial Realty, Inc. acquired nearly $200 million in property throughout Southern California’s industrial market, putting the company in a good position for the remainder of the 2021 year.
“Our first quarter results demonstrate the strength of Rexford’s operating platform and exceptional market fundamentals within the infill Southern California industrial market. Rexford achieved Core FFO growth of 29% for the first quarter, driven by robust leasing activity of nearly 2 million square feet at GAAP and cash releasing spreads of 47% and 33%, respectively,” Co-Chief Executive Officers Michael Frankel and Howard Schwimmer stated.
In total, Rexford Industrial Realty – a real estate investment trust focusing primarily on industrial properties – acquired 11 properties for an aggregate purchase price of $163.5 million. In April, the company purchased an additional two properties, bringing its total to $191.41. The company also sold two properties for an aggregate sales price of $20.8 million.
Properties were sold in both Los Angeles and the Inland Empire, and totaled 87,733 in rentable square feet. The 11 properties acquired by Rexford Industrial Realty total 807,408 rentable square feet.
Of these acquired properties, 4225 Etiwanda Avenue in the Inland Empire was Rexford Industrial Realty’s largest transaction in the first quarter. The property was acquired for $32 million, and makes up for 134,500 square feet of rentable space with a 100% occupancy rate.
Other properties acquired by Rexford Industrial Realty in the first quarter of 2021 include:
• 15010 Don Julian Road, San Gabriel Valley, for $22.2 million
•5002-5018 Lindsay Court, Inland Empire, for $12.65 million
•514 East C Street, South Bay, for $9.95 million
•17907-18001 Figueroa Street, South Bay, for $20.20 million
•7817 Woodley Avenue, Greater San Fernando Valley, for $9.96 million
•8888-8892 Balboa Avenue, San Diego, for $19.80 million
•9920-10020 Pioneer Boulevard, Mid-Counties, for $23.50 million
•2553 Garfield Avenue, Los Angeles, for $3.90 million
•6655 East 26th Street, Los Angeles, for $6.50
•560 Main Street, Orange County, for $2.60 million
•12118 Bloomfield Avenue, Mid-Counties, for $16.65 million
•256 Alondra Boulevard, South Bay, for $11.25 million
In addition to its newly acquired properties, Rexford Industrial Realty also is planning redevelopment projects on a number of its 257 properties in Southern California.
As of the end of the first quarter, Rexford Industrial has 17 properties currently undergoing repositioning.In total, the company has 774,064 square feet of property currently undergoing redevelopment. These properties are estimated to cost approximately $1 million individually.
Looking to the future, the company is also planning to redevelop at other properties beginning as early as the second quarter of 2021. In total, Rexford Industrial Realty plans to redevelop 568,250 square feet of property, with construction on all properties to be completed no later than the third quarter of 2023.
The company equated much of this growth to companies’ continued need to lease industrial spaces throughout Southern California.
“Our irreplaceable portfolio combined with our tenants’ need for well-located industrial space close to the end consumer drove same property NOI growth of 6.8% on a GAAP basis and 8.2% on a cash basis. We continue to maintain a best-in-class, low leverage balance sheet profile, completing the quarter with 13% net debt-to-enterprise value. Looking forward, we are excited at our favorable prospects to create shareholder value through the execution of our internal and external growth capabilities,” Frankel and Schwimmer stated.
By the end of the first quarter, Rexford’s portfolio occupancy rate was at 98.6% They also saw a 6% increase in stabilized same property rental income and a 3.3% increase in stabilized same property expenses.
Rexford Industrial has a total of 1,515 leases. Of those leases signed, the top 20 tenants make up for 5,828,525 square feet of the company’s rentable space.
Some of these tenants include Federal Express Corporation, which has leases signed in multiple submarkets throughout Southern California. Federal Express Corporation alone makes up for 527,861 square feet of leased space.
Other major tenants include Michael Kors (USA), Inc., Unified Natural Foods Inc. and Lumber Liquidators Services, all of which make up for more than 500,000 square feet of leased space individually.