LOS
ANGELES and NEW
YORK, March 28, 2024 /PRNewswire/ -- Rexford
Industrial Realty, Inc. ("Rexford Industrial") (NYSE: REXR), a real
estate investment trust focused on creating value by investing in
and operating industrial properties located throughout infill
Southern California, and
Blackstone (NYSE: BX), today announced Rexford Industrial acquired
approximately 3 million square feet of industrial properties
pursuant to separate transactions with Blackstone Real Estate,
including the Blackstone Property Partners strategy as well as
Blackstone Real Estate Partners and Blackstone Real Estate Income
Trust, for an aggregate purchase price of $1.0 billion.
The combined portfolio comprises 48 properties, totaling
3,008,000 square feet, acquired for $1.0
billion or $332 per square
foot on average. 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.
"These 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 to drive accretive cash flow growth,
increased operating margins and long-term value
creation," stated Howard Schwimmer and Michael
Frankel, Co-Chief Executive Officers of Rexford Industrial. "With
these transactions, we are pleased to further our Blackstone
relationship, and look forward to identifying opportunities for
future collaboration. Looking forward, our total pipeline comprises
approximately $300 million of
investments under contract or accepted offer, bringing the
aggregate year-to-date $1.4 billion
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."
David Levine, Co-Head of Americas
Acquisitions for Blackstone Real Estate, said, "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 million square feet of
warehouses. Logistics continues to experience near record low
vacancy and remains a high conviction theme for Blackstone Real
Estate globally; we are proud owners of $175
billion of warehouses around the world. Along with our
portfolio company Link Logistics, we are pleased to work with
Rexford on these transactions, who
will be an excellent steward of these properties going
forward."
About Rexford Industrial
Rexford Industrial creates
value by investing in, operating and redeveloping industrial
properties throughout infill Southern
California, the world's fourth largest industrial market and
consistently the highest-demand, lowest supply market in the
nation. Rexford Industrial's highly differentiated strategy enables
internal and external growth opportunities through its proprietary
value creation and asset management capabilities. Rexford
Industrial's high-quality, irreplaceable portfolio comprises
422 properties with approximately 49.1 million rentable
square feet occupied by a stable and diverse tenant base.
Structured as a real estate investment trust (REIT) listed on the
New York Stock Exchange under the ticker "REXR," Rexford Industrial
is an S&P MidCap 400 Index member. For more information, please
visit www.rexfordindustrial.com.
About Blackstone Real Estate
Blackstone is a global
leader in real estate investing. Blackstone's real estate business
was founded in 1991 and has US $337
billion of investor capital under management. Blackstone is
the largest owner of commercial real estate globally, owning and
operating assets across every major geography and sector, including
logistics, residential, office, hospitality and retail. Our
opportunistic funds seek to acquire undermanaged, well-located
assets across the world. Blackstone's Core+ business invests in
substantially stabilized real estate assets globally, through both
institutional strategies and strategies tailored for income-focused
individual investors including Blackstone Real Estate Income Trust,
Inc. (BREIT), a U.S. non-listed REIT, and Blackstone's European
yield-oriented strategy. Blackstone Real Estate also operates one
of the leading global real estate debt businesses, providing
comprehensive financing solutions across the capital structure and
risk spectrum, including management of Blackstone Mortgage Trust
(NYSE: BXMT).
Forward-Looking Statements
This press release includes
forward-looking statements within the meaning of the federal
securities laws and the Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by the use
of forward-looking terminology such as "outlook," "indicator,"
"believes," "expects," "potential," "continues," "identified,"
"may," "will," "should," "seeks," "approximately," "predicts,"
"intends," "plans," "estimates," "anticipates," "confident,"
"conviction," or other similar words or the negatives
thereof. These may include financial estimates and their
underlying assumptions, statements about plans, objectives,
intentions, and expectations with respect to positioning, including
the impact of macroeconomic trends and market forces, future
operations, repurchases, acquisitions, future performance and
statements regarding identified but not yet closed acquisitions.
Such forward-looking statements are inherently uncertain and there
are or may be important factors that could cause actual outcomes or
results to differ materially from those indicated in such
statements. Rexford Industrial and BREIT believe these
factors include but are not limited to those described under the
section entitled "Risk Factors" in Rexford Industrial's and
BREIT's respective prospectus and annual report for the most recent
fiscal year, and any such updated factors included in
Rexford Industrial's and BREIT's periodic filings with the
SEC, which are accessible on the SEC's website at www.sec.gov.
These factors should not be construed as exhaustive and should be
read in conjunction with the other cautionary statements that are
included herein (or in Rexford Industrial's and BREIT's public
filings). Except as otherwise required by federal securities laws,
each of Rexford Industrial and BREIT undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
Contacts:
Rexford
Industrial
investorrelations@rexfordindustrial.com
Blackstone
Jeffrey Kauth
Jeffrey.Kauth@blackstone.com
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SOURCE Rexford Industrial Realty, Inc.