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7/21/17
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Rexford Industrial Realty closed on another notable acquisition, paying $210.5 mil for Pacifica Industrial Park, a six-building, 1.17 msf ($180/sf) complex in Rancho Dominguez. The property, consisting of six buildings on roughly 56 acres, is adjacent to the Alameda Intermodal Corridor and six miles from the Ports of Long Beach and Los Angeles.
The property encompasses six multi-tenant industrial buildings leased to 23 tenants. It features market-leading dock-high loading and 24- to 30-foot warehouse clearance within a unique gated, fully secured complex.
The complex is 99% leased at in-place lease rates estimated to be approximately 25% below market, on average, presenting Rexford the opportunity to increase cash flow as 76% of current tenant leases roll through the end of 2020. According to CBRE, the vacancy rate in the 220 msf South Bay industrial submarket was 0.6% in the first quarter of 2017.
Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey and Nico Napolitano with Cushman & Wakefield represented the seller in the deal.
The acquisition was funded with the company's line of credit as well as the issuance of a $125 mil note. Separately, Rexford recently launched a new "At the Market" stock offering program ("ATM") with total capacity of $150 mil, having utilized the previous $125 mil ATM program.
Under both programs, the company issued an aggregate of 4,398,476 shares of common stock during the quarter ended June 30, 2017. The shares were issued at a weighted average offering price of $26.52 per share, providing gross proceeds of approximately $116.6 mil and net proceeds of approximately $114.9 mil. The new program has approximately $145.2 mil of remaining capacity.
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