Southern California-based industrial property specialists Rexford Industrial Realty (NYSE:REXR) announced Thursday that it had entered into an agreement with an unaffiliated third-party seller to acquire a 1,000,000 square feet industrial park in the San Gabriel Valley.
The purchase price of the four-building site is approximately $296.6m, exclusive of closing costs.
Rexford expects to fund the acquisition through a combination of available cash on hand and the company’s unsecured revolving credit facility. The company made a deposit of $15m upon entering into the agreement.
The acquisition is scheduled to close in October 2020, subject to the satisfaction of customary closing requirements and conditions.
Rexford Industrial Realty is listed in the New York Stock Exchange and at time of writing has a marcap of $6.36bn. The original business was founded in 2001 by Chairman Robert Ziman and co-CEO Howard Schwimmer.
The company is a real estate investment trust that specializes in acquiring, owning, and operating industrial properties in Southern California markets. The company focuses on so-called “infill” markets in and around Southern California’s major urban centres and owns 233 properties comprising approximately 28,000,000 rentable square feet.
Industrial property deals have been coming thick and fast in recent weeks, with last-mile logistics and online retail showing resilience to the COVID-19 economic downturn. According to the company’s investor presentation, released in September, Rexford is looking to tap into this growing trend with 100% of its portfolio situated in locations suitable for last-mile distribution facilities.
This strategy appears to be paying off with Rexford’s share rebound since the March sell-off well outpacing the MSCI REIT Index. In its 2Q 2020 results the trust reported Core FFO of $38.8m, up 21.1% on 2Q 2019.