Rexford IndustrialRealty Inc. has inked a roughly $191.0 million deal to acquire a privateREIT that owns a nine-property industrial portfolio in Southern California infillmarkets.
The company said April 11 that it will exercise an accordionfeature on its $125.0 millionunsecured term loan, representing additional proceeds of $100.0 million, to helpfinance the transaction.
In connection with the deal, the company announced separatelythat it commenced a public offering of 9.0 million shares of common stock. Includinga 1,350,000-share overallotment option, the offering represents aggregate grossproceeds of $186.4 million.
The company will contribute the offering's net proceeds to itsoperating partnership, which intends to use them to repay outstanding amounts onits unsecured revolving credit facility, fund potential acquisitions, includingthe REIT purchase, and for general corporate purposes.
The acquisition will add nine properties to Rexford's portfolio.The assets cover 1,530,814 net rentable square feet on 79.8 acres in four of thecompany's core infill markets in Southern California, including Orange County, LosAngeles-San Gabriel Valley, Inland Empire West and Central San Diego. The assetsare 100% leased by 12 tenants, with a 4.5-year weighted average remaining leaseterm.
The acquisition "enables the [c]ompany to expand our operatingleverage as we increase our square footage by 50% in Orange County, in particular,which is one of our key target markets," Co-CEOs Howard Schwimmer and MichaelFrankel said in a release.
BofA Merrill Lynch, Citigroup, Wells Fargo Securities, J.P. Morganand Jefferies are acting as joint book runners of the offering, which is expectedto be finalized during the second quarter.