Rexford Industrial Spends $458M in Q1

Rexford Industrial is continuing its aggressive acquisition campaign. The firm recently acquired four industrial properties in Southern California for $82.7 million, bringing its first quarter investment activity to $458 million.

In its latest string of acquisitions, the REIT acquired 700-806 W. 14th Street and 701-733 W. Anaheim Street in Long Beach for $24 million; 19900 Plummer Street in Chatsworth for $15 million; 6245 Providence Way in Eastvale in the Inland Empire for $9.7 million; and 13711 Freeway Drive in Santa Fe Springs in Los Angeles for $34 million.

Through the first quarter, the company acquired 85% of its properties in off-market transactions or lightly marketed deals. Buying properties off market is part of the company’s core business strategy, enabling them to generate above market returns on investments, according to Howard Schwimmer and Michael Frankel, co-CEOs of the company. The current investments are expected to deliver strong returns as well. The Long Beach property should offer a 4.1% unlevered cash yield is expected to grow to a 5.3% stabilized unlevered cash yield on total investment; the Chatsworth property should generate an initial 4.8% unlevered cash yield and provides future value-add redevelopment opportunity; the Inland Empire property will bring an initial 2.9% unlevered cash yield is projected to grow to an unlevered stabilized cash yield on total investment of approximately 5.1%; and the Santa Fe Springs property is projected to generate a 5.0% stabilized unlevered cash yield on total investment.

Last year, Rexford closed nearly $2 billion in investment transactions in Southern California, and this year, they have continued to aggressively buy properties. Last month, the firm acquired $170 million in industrial deals. According to the firm, they have $500 million in assets under contract or with an accepted offer, and they expect to deliver strong returns across the portfolio again this year.