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April 24, 2024
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Rexford Industrial Acquires Blackstone Industrial Assets in Combined $1 Billion Investment


Rexford Industrial Realty acquired approximately 3 msf of industrial properties from Blackstone Real Estate entities in deals totaling $1 bil. The combined purchase consists of 48 properties and works out to an average price of $332/sf. The combined portfolio is 98% leased, with 99% of the property square footage located within core, infill submarkets in Los Angeles and Orange counties.

In aggregate, the investments are expected to generate a weighted average initial unlevered cash yield of 4.7% and an anticipated stabilized unlevered cash yield of 5.6%.These investments were funded using proceeds from Rexford Industrial's recent exchangeable senior note offerings and cash on hand.

According to Rexford execs, theses strategic investments in exceptionally well-located, high-quality assets within infill Southern California, the nation's highest-barrier and lowest supply industrial market, represent a significant opportunity for the firm to drive accretive cash flow growth, increased operating margins and long-term value creation.

Rexford tells us that the company’s pipeline currently comprises approximately $300 mil of investments under contract or accepted offer, bringing the aggregate year-to-date $1.4 bil of investments completed or in the pipeline, to a weighted average 5.0% anticipated initial unlevered cash yield and anticipated 5.7% stabilized unlevered cash yield.

For Blackstone, "These transactions represent an excellent outcome for our investors and demonstrate the strong institutional demand for high-quality assets in attractive markets like Southern California, where we own over 50 msf of warehouses,” stated David Levine, Co-Head of Americas Acquisitions for Blackstone Real Estate. “Logistics continues to experience near record low vacancy and remains a high conviction theme for Blackstone Real Estate globally.”

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