Send me real-time posts from this site at my email

Rexford (REXR) Continues Expansion, Buys 2 Industrial Properties

Rexford Industrial Realty, Inc. REXR recently announced shelling $339.2 million for the acquisition of a four-building industrial complex and a three-tenant industrial property in prime infill Southern California markets. With these buyouts, the company’s 2020 acquisition activity has grossed $729.3 million.

In Whittier, within the LA — Mid-Counties sub-market, the company has acquired Gateway Pointe Industrial Campus located at 3963, 3931, 3735, and 3629 Workman Mill Road for $296.6 million. This 45.12-acre project comprises four Class A industrial buildings containing 989,195 square feet.

In Sylmar within the LA — San Fernando Valley sub-market, the company acquired 13943-13955 Balboa Boulevard through an off-market transaction for $42.6 million. This three-tenant Class A industrial building contains 200,632 square feet on 10.5 acres of land.

These acquisitions, funded using a combination of cash on hand, 1031 exchange proceeds from prior dispositions, assumption of existing debt and operating partnership units, are a strategic fit for Rexford. Southern California is considered the nation's highly-valued industrial property market with supply constraints.

Per CBRE Group CBRE, at the end of third-quarter 2020, the vacancy rate in the 112 million square foot LA — Mid-Counties sub-market was 2.2%, the same in the 175 million-square-foot LA — San Fernando Valley sub-market was 2.7%, reflecting the solid demand for industrial properties in these markets.

Amid the e-commerce boom and supply-chain strategy transformations, demand for industrial real estate has been encouraging. Warehouse operations have become more essential with surging e-commerce customers in light of the coronavirus pandemic. Apart from the fast adoption of e-commerce, the logistics real estate is anticipated to benefit from the likely rise in inventory levels over the long term. This will open up prospects for Rexford and other industrial REITs like Duke Realty Corp. DRE, Prologis PLD and others.

Notably, equipped with a well-capitalized balance sheet and an impressive acquisition pipeline with roughly $600 million of new investments under LOI or contract and expected to close in the coming months, Rexford is well poised to gain traction from solid market fundamentals.

Shares of this currently Zacks Rank #3 (Hold) company have gained 37.5% so far in the year compared with the 12.5% decline of its industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Prologis, Inc. (PLD): Free Stock Analysis Report
Duke Realty Corporation (DRE): Free Stock Analysis Report
Rexford Industrial Realty, Inc. (REXR): Free Stock Analysis Report
CBRE Group, Inc. (CBRE): Free Stock Analysis Report
To read this article on click here.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue